Number of FTEs that perform the process "manage sales orders" per $1 billion revenue

This measure calculates the number of full-time equivalent employees (FTEs) tending to the entire process "manage sales orders" per $1 billion revenue. The "manage sales orders" process encompasses many operations, including inquiries, quotes, order entry, maintenance, order fulfillment, delivery, installation, and accounting. This measure is part of a set of Process Efficiency measures that help companies optimize the performance of their "manage sales orders" process by minimizing waste and refining resource consumption.

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Measure Category:
Process Efficiency
Measure Id:
101014
Total Sample Size:
4,073 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
Yes

Compute this Measure

Units for this measure are FTEs.

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Number of FTEs who perform the process "manage sales orders" / (Total business entity revenue * .000000001)

Key Terms

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Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

FTE - (full-time equivalent employee)

To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.

For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:

20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting

20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting

Process efficiency

Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Median

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (7.2.1)

  • 3.5.4.1 - Accept and validate sales orders (10194) - Receiving and confirming orders from customers. Verify that no extra expenses have to be disbursed on part of the organization for labor or inventory when processing the order.
  • 3.5.4.2 - Collect and maintain account information (10195) - Collecting and maintaining all account information. Collect information about the purchase, servicing, return, and/or commitment of any products/services on part of the organization to its customers. Bring together information from various organizational divisions, and update periodically.
    • 3.5.4.2.1 - Administer key account details (10201) - Managing essential information of customer accounts.
    • 3.5.4.2.2 - Retrieve full customer details (10202) - Obtaining detailed information about customers.
    • 3.5.4.2.3 - Modify involved party details (10203) - Altering information about involved parties.
    • 3.5.4.2.4 - Record address details (10204) - Documenting address information.
    • 3.5.4.2.5 - Record contact details (10205) - Documenting contact information.
    • 3.5.4.2.6 - Record key customer communication profile details (10206) - Providing information about important business rules regarding communicating with customers.
    • 3.5.4.2.7 - Review involved party information (10207) - Revising information about involved parties.
    • 3.5.4.2.8 - Terminate involved party information (10208) - Dismissing information about involved parties.
  • 3.5.4.3 - Determine availability (10196) - Ascertaining the volume or scale of products/services to provide to customers to fulfill sales orders. Check the finished products stored in warehouses, the production capacity, and (in the case of services) the processing speed, as well as work force availability.
  • 3.5.4.4 - Determine fulfillment process (10197) - Devising a blueprint for order fulfillment. Create a schematic flow encompassing all activities to deliver orders to the customers. Outline a procedure for satisfying these orders by answering questions about what needs to happen in sequence to realize an order.
  • 3.5.4.5 - Enter orders into system (10198) - Analyzing all data relating to sales orders by entering it into a centralized repository, and using the insights generated to create opportunities for cross-/up-selling. Maintain up-to-date records of sales, along with current status. Include all sales activity with relevant information about the associated customers, and identify patterns in the data. Glean insights from these patterns to persuade customers to purchase additional offerings or upgrade purchased products/services.
  • 3.5.4.6 - Identify/perform cross-sell/up-sell activity (17404) - Utilizing customer inquiries as opportunities to either provide a comparable service to the one in question, offer additional complimentary service, or suggest a service that is better than what was initially offered.
  • 3.5.4.7 - Process back orders and updates (10199) - Processing any unfulfilled orders, and updating the status of any orders that have been accepted and are being attended to. Deliver on any purchase orders that remain unserviced due to temporary unavailability of the product/service. Manage any updates to the sales orders. Revise their status in the order system.
  • 3.5.4.8 - Handle sales order inquiries including post-order fulfillment transactions (10200) - Attending to any queries received from the customers, even after a sales order has been serviced. Deploy ad hoc personnel for managing these enquiries.