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Order Management Cost Distribution Costs 41210 3 Order Management, Distribution, Delivery, Call Center Order Management Cost measures a company’s expenses related to the creation and maintenance of orders, order documentation, customer credit and invoices
CO121
Difference between revisions of "CO121"
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{{this}} measures a company’s expenses related to the creation and maintenance of orders, order documentation, customer credit and invoices. Example costs include: Order management labor cost, automation cost, property, plant & equipment cost and order management governance, risk and compliance costs. | {{this}} measures a company’s expenses related to the creation and maintenance of orders, order documentation, customer credit and invoices. Example costs include: Order management labor cost, automation cost, property, plant & equipment cost and order management governance, risk and compliance costs. | ||
| − | === | + | ===Calculation=== |
{{this}} is calculated as cumulative annual (or other reporting period) order management costs | {{this}} is calculated as cumulative annual (or other reporting period) order management costs | ||
{{math|{{this}}|[[m:CO1211]]|add|[[m:CO1212]]|add|[[m:CO1213]]|add|[[m:CO1214]]}} | {{math|{{this}}|[[m:CO1211]]|add|[[m:CO1212]]|add|[[m:CO1213]]|add|[[m:CO1214]]}} | ||
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|sort=41210 | |sort=41210 | ||
|level=3 | |level=3 | ||
| + | |keywords=Order Management, Distribution, Delivery, Call Center | ||
| + | |description=Order Management Cost measures a company’s expenses related to the creation and maintenance of orders, order documentation, customer credit and invoices | ||
}} | }} | ||
Latest revision as of 03:45, 1 September 2020
Order Management Cost measures a company’s expenses related to the creation and maintenance of orders, order documentation, customer credit and invoices. Example costs include: Order management labor cost, automation cost, property, plant & equipment cost and order management governance, risk and compliance costs.
Calculation
Order Management Cost is calculated as cumulative annual (or other reporting period) order management costs
| Order Management Cost | |
| = | Order Management Labor Cost |
| + | Order Management Automation Cost |
| + | Order Management PP&E Cost |
| + | Order Management GRC Cost |
where:
- Order Management Labor Cost = Total annual labor costs allocated to Order Management
- Order Management Automation Cost = Total annual Automation costs allocated to Order Management
- Order Management PP&E Cost = Total annual Property, Plant & Equipment costs allocated to Order Management
- Order Management GRC Cost = Total Governance, Risk & Compliance costs allocated to Order Management
Benchmarking
Order Management Cost Ratio compares order management costs to total sales revenue for benchmarking purposes.
| Order Management Cost Ratio | ||||
| = |
| |||
where:
- Order Management Cost = Total annual order management costs
- Revenue = Total annual supply chain revenue
Importance
A lower percentage indicates better cost performance. For benchmarking purposes this metric is measured annually. For scorecards, dashboards and cockpits these a typically a rolling number of months. Discuss Contract Custom Solution
Community Importance Rating: Hierarchy
| ID | Name | Level | x |
|---|---|---|---|
| CO12 | Distribution Costs | 2 | CO12 |
| CO121 | Order Management Cost | 3 | CO121 |
| CO1211 | Order Management Labor Cost | 4 | CO1211 |
| CO1212 | Order Management Automation Cost | 4 | CO1212 |
| CO1213 | Order Management PP&E Cost | 4 | CO1213 |
| CO1214 | Order Management GRC Cost | 4 | CO1214 |
Process(es)
| ID | Name | Level | x |
|---|---|---|---|
| S401 | Process Return Inquiry | 3 | S401 |
| S402 | Create Return Authorization | 3 | S402 |
| S408 | Settle Return | 3 | S408 |
| D101 | Process Inquiry | 3 | D101 |
| D102 | Create Order | 3 | D102 |
| D103 | Reserve Inventory | 3 | D103 |
| D105 | Invoice | 3 | D105 |
| D201 | Process Inquiry | 3 | D201 |
| D202 | Validate & Create Order | 3 | D202 |
| D203 | Route & Schedule Order | 3 | D203 |
| D205 | Invoice | 3 | D205 |
| D301 | Receive Request for Proposal | 3 | D301 |
| D302 | Develop & Present Proposal | 3 | D302 |
| D303 | Create Project Order | 3 | D303 |
| D304 | Schedule Project Resources | 3 | D304 |
| D305 | Schedule Delivery & Installation | 3 | D305 |
| D306 | Invoice | 3 | D306 |