Total cost to perform the process group "deliver service to customer" as a percentage of total supply chain function cost

This measure calculates the percentage of the total cost of the supply chain function allocated to the process group "deliver service to customer," which involves validating specific service requirements for individual customers, determining and scheduling resources to fulfill customer requirements, providing service to specific individual customers, and ensuring the quality of service delivery. The supply chain function comprises the links between supplier and manufacturer, distributor, retailer, and finally, consumer. This Supplemental Information measure is intended to help companies evaluate additional variables related to the process group "Deliver service to customer".

Benchmark Data


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Measure Category:
Supplemental Information
Measure ID:
Total Sample Size:
743 All Companies
Key Performance

Compute this Measure

Units for this measure are percent.

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Percentage of total cost to perform the supply chain function "deliver products and services" allocated to process group "deliver service to customer"

Key Terms

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Process Cost Components

Total cost for a process, process group, or function consists of the following five components.

Internal/In-house operating cost consists of the first four components (personnel, systems, overhead, and other).

Personnel Cost

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.

Systems Cost

Systems costs include all expenses, paid or incurred, in conjunction with:
Computer hardware or computer software acquired by the organization or provided to the organization through service contracts.

Any related costs to process, service and maintain computer hardware or computer software. The costs of providing and maintaining services for each applicable process (e.g., computer system(s) processing (CPU) time, network/system communication charges, maintenance costs for applications and data storage). This includes the costs related to LANs, WANs, etc. This does not include one-time costs for major new systems developments/replacements. Consultant fees should not be included in depreciation of new system implementations. Include only those costs that occur more than six (6) months after implementation, as normal system maintenance costs. Any systems cost (e.g., maintenance) which is outsourced to a third party supplier should be captured in the separate cost category labeled outsourced cost.

Systems cost should include all salaries, overtime, employee benefits, bonuses or fees paid to full-time, part-time or temporary employees or independent contractors who perform services relating to computer hardware, computer software, processing or systems support.

Overhead Costs

For the purpose of this study, provide the total actual overhead costs for the year related to the specified process. These are costs that cannot be identified as a direct cost of providing a product or a service. Include the primary allocated costs such as occupancy, facilities, utilities, maintenance costs, and other major costs allocated to the consuming departments. Exclude systems costs that are allocated, since these will be captured separately as systems cost.

Other Cost

Other costs are costs associated with the specified process, but not specifically covered in personnel cost, systems cost, overhead cost and outsourced cost in this questionnaire. These other costs include costs for supplies and office equipment, travel, training and seminars. Include the cost of telephones, except for that portion captured in systems cost.

External/Outsourced Cost

In determining outsourced cost, include the total cost of outsourcing all aspects of the specified process to a third-party supplier. Exclude one-time charges for any type of restructuring or reorganization. Outsourced costs should also include costs for intracompany outsourcing (i.e., reliance on a shared services center or other business entity).

Cost Effectiveness

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 (7.3.0)

  • - Confirm specific service requirements for individual customer (10320) - Acquiring or soliciting information about specific service requirements for individual customers through the customer service function. Obtain information about customer specific requests, process these requests, and create customer profiles to generate a service order.
    • - Process customer request (10324) - Soliciting or acquiring information using various sources such as databases, customer interactions, and customer request forms. Hand them further up the hierarchy to deal with them. Categorize the user's request, determining if the request is supportable and prioritizing the request.
    • - Create customer profile (10325) - Documenting the individual customer service requirements solicited, along with personal information of the customers, in order to generate customized profiles that hasten the delivery process.
    • - Generate service order (10326) - Designing a short-term agreement between the service provider and customer. One-time services are ordered by the service recipient and resource-related billing is performed upon completion. Use the service order to document service and customer service work.
  • - Identify and schedule resources to meet service requirements (10321) - Determining and scheduling the resources required to fulfill customer service requirements. Create a detailed schedule about the service orders and development of these service orders.
    • - Create resourcing plan and schedule (10327) - Developing a plan for sourcing and deploying the resources required to fulfill customer service needs. Document a detailed summary of all types of resources (equipment, finance, personnel, time, etc.) required to complete customer service requests and procure these resources. Identify and assess various sources in order to effectively create a resourcing plan.
    • - Create service order fulfillment schedule (10328) - Designing a detailed summary of customer service order requirements, along with information concerning the timing and duration for these services. Categorize the customer needs. Monitor the services delivered.
  • - Provide service to specific customers (10322) - Dispatching resources for managing and fulfilling daily service requirements. Manage the progress of order fulfillment. Complete order blocks.
    • - Organize daily service order fulfillment schedule (10330) - Laying out a daily plan of specific service orders that need to be fulfilled. Document and systematically order these activities to ensure high effectiveness and efficiency.
    • - Execute product repair (10331) - Dispatching and delivering the resources needed for the specific service requirements from the source/warehouse. Manage the dispatch, transportation, and delivery of the services.
    • - Manage service order fulfillment (10332) - Handling and managing orders fulfilled, along with the orders are not or partially fulfilled to track the order fulfillment progress. Use electronic devices such as trackers and GPS in order track and ensure delivery of the orders.
  • - Ensure quality of service (10323) - Guaranteeing the quality of service provided to customers. Identify the successful and unsuccessful orders along with the service failures. Collect customer feedback. Process the feedback to ensure the quality of service in the future.
    • - Identify completed service orders for feedback (10334) - Determining the service orders that have been successfully delivered. Identify the service orders completed and delivered to the customer. Leverage communication systems to ensure coordination with the customers in order to avoid mishaps.
    • - Identify incomplete service orders and service failures (10335) - Determining orders which have not been completed or delivered. Identify the service orders that are partially or entirely incomplete, as well as the orders that have not been delivered to the customer. Use techniques such as project trackers to recognize the progress of the service orders.
    • - Solicit customer feedback on services delivered (10336) - Obtaining and procuring customer reviews or feedback on the services delivered. Design a customer feedback form, or communicate with the customer through the phone or online.
    • - Process customer feedback on services delivered (10337) - Assessing and incorporating customer reviews/feedback into the service plan to ensure high quality of service.