Number of FTEs that perform the process "manage returns; manage reverse logistics" per $1 billion revenue

This measure calculates the number of full-time equivalent employees (FTEs) per $1 billion revenue who are employed for the physical handling, information processing, and disposition of the product and packaging returned by the buyer to the seller or an intermediary. Associated tasks include return approval, transportation coordination, advance communication, product tracking, receipt, disposition of the return, and processing warranty claims. This measure is part of a set of Process Efficiency measures that help companies optimize the performance of their "manage returns; manage reverse logistics" process by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure Id:
101063
Total Sample Size:
780 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are FTEs.

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Number of FTEs who perform the process "manage returns; manage reverse logistics" / (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.

Measure Scope

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Cross Industry (6.1.1)

  • 4.5.5.1 - Authorize and process returns (10364) - Approving and carrying forward the requests by the customers to return the product. This is part of the process of returning a product in order to receive a refund, replacement, or repair during the product's warranty period.
  • 4.5.5.2 - Perform reverse logistics (10365) - Moving products from their typical final destination to the origin or manufacturing destination for the purposes remanufacturing or refurbishment. Implement a transportation system to ensure that the products are returned back to their originating position safely and in tact.
  • 4.5.5.3 - Perform salvage activities (10366) - Executing activities for reinstating the returned products. Present the customer with additional incentives of compensation in case of any defective products delivery or any discrepancy in the product specifications in order to save the order from being permanently returned.
  • 4.5.5.4 - Manage and process warranty claims (10367) - Managing and administering any claims on the warranty of products. Handle and approve the customer claims for repair or replacement of, or compensation for non-performance or under-performance of an item, as provided for in the warranty document.
  • 4.5.5.5 - Manage repair/refurbishment and return to customer/stock (14195) - Administering the reinstatement of the returned product in order to return them back to customers. Repair or remanufacture the defective or ineffective products returned by the customer. Process the delivery of the repaired or remanufactured products back to the customer.