In this post I will discuss how SAP Business Network suppliers can leverage recently released KPIs and benchmarks to measure and evaluate customer transaction performance in the pursuit to reduce costs and mitigate business risks.
The impact of customer transaction inefficiency is often overlooked or ignored as an unavoidable cost of conducting business. Evaluating and managing the cost and impact of transacting with customers in the current economic environment of rising costs is increasing important to address price pressure and avoid margin erosion. Too often, however, collecting objective transaction metrics, calculating valid performance scores, and obtaining an applicable baseline on which to do a comparative analysis is time consuming, subjective, or simply not available.
In the
2302* release and over the last several quarters , SAP Business Network KPIs and Benchmarks has delivered Bronze-level suppliers transaction metrics, KPIs, and benchmarks relative to invoicing and payment performance that provide these suppliers an opportunity to initiate a fact-based dialogue with customers on the opportunity to control transaction costs and reduce their impact.
Available transaction
Metrics including Approved Invoices and Invoice Exceptions - submitted invoices that do not comply with customer’s configured business rules - serve as quantitative measurements that provide context to transaction performance.
Key Performance Indicators (KPIs) measuring specific targets to gauge performance include:
- Invoice Cycle Time* – The time, in days, required to approve a submitted invoice.
- Invoice Exception Rate* – The percentage of total invoices that do not comply with configured business rules.
- Payment Days Late – The number of days elapsed between the payment due date and the actual scheduled payment date.
- Days to Pay* – The number of days taken to pay approved invoices.
Leveraging the power of the SAP Business Network,
Benchmarks are calculated from the analysis of hundreds of millions of transactions and deliver an objective baseline on which to compare relative
Invoice Cycle Time* and
Payment Days Late.
Through an understanding and analysis of the KPIs and Benchmarks of critical business processes suppliers gain insight to customer performance of critical business processes that directly impact cash flow and overall business risks.
Check out the KPIs and Benchmarks for Suppliers and start talking to your customers about it today!
What impact could these performance measures have in conversation with your buyers? What other types of performance measures would you like to see?
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