Personnel cost to perform the process "manage sales orders" per $1,000 revenue

This measure calculates the amount of personnel cost per $1,000 revenue for the process "manage sales orders." Personnel cost includes employee salaries/wages, bonuses, benefits, etc. 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 Cost Effectiveness measures that help companies understand all cost expenditures related to the process "manage sales orders."

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure ID:
102914
Total Sample Size:
2,845 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No

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Compute this Measure

Units for this measure are dollars.

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Personnel cost to perform the process "manage sales orders" / (Total business entity revenue * 0.0010)

Key Terms

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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.

Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.

Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.

Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Measure Scope

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Cross Industry (7.3.1)

  • 3.5.4.1 - Accept and validate sales orders (10194)
  • 3.5.4.2 - Collect and maintain account information (10195)
    • 3.5.4.2.1 - Administer key account details (10201)
    • 3.5.4.2.2 - Retrieve full customer details (10202)
    • 3.5.4.2.3 - Modify involved party details (10203)
    • 3.5.4.2.4 - Record address details (10204)
    • 3.5.4.2.5 - Record contact details (10205)
    • 3.5.4.2.6 - Record key customer communication profile details (10206)
    • 3.5.4.2.7 - Review involved party information (10207)
    • 3.5.4.2.8 - Terminate involved party information (10208)
  • 3.5.4.3 - Determine availability (10196)
  • 3.5.4.4 - Determine fulfillment process (10197)
  • 3.5.4.5 - Enter orders into system (10198)
  • 3.5.4.6 - Identify/perform cross-sell/up-sell activity (17404)
  • 3.5.4.7 - Process back orders and updates (10199)
  • 3.5.4.8 - Handle sales order inquiries including post-order fulfillment transactions (10200)