First, I would like to thank everyone that attended the "Building the Business Case for E-Commerce" Sell session at #AribaLIve last week in Las Vegas.  I took the action to post to everyone a set of Key Performance Indicator (KPI) metrics as determined by outside research and analyst organization as an example of industry benchmarks.  Below are the KPI's that we have gathered so far and where we obtained the metrics.  If you have any additional sources or information, feel free to append to this blog.

 

KPI

Unit

External Benchmark

Source

Report Name

Process time per paper PO

Hours

  1. 0.4

AberdeenGroup

Aberdeen: eProcurement: Trials and Triumphs

Process time per HTML PO

Hours

  1. 0.3

AberdeenGroup

Aberdeen: eProcurement: Trials and Triumphs

Process time per EDI PO

$

AberdeenGroup

Process time per cXML PO

Hours

  1. 0.2

AberdeenGroup

Aberdeen: eProcurement: Trials and Triumphs

Avg % of PO's requiring Confirmations

%

30%

Ariba Network Data

n/a

Avg % of PO's requiring ASNs

%

10%

Ariba Network Data

n/a

Process time per paper Order Confirmation

Hours

  1. 0.4

AberdeenGroup

Aberdeen: eProcurement: Trials and Triumphs

Process time per HTML Order confirmation

Hours

  1. 0.3

AberdeenGroup

Aberdeen: eProcurement: Trials and Triumphs

Process time per EDI Order confirmation

$

Process time per cXML Order Confirmation

Hours

  1. 0.2

AberdeenGroup

Aberdeen: eProcurement: Trials and Triumphs

Process time per paper ASN

Hours

  1. 0.4

AberdeenGroup

Aberdeen: eProcurement: Trials and Triumphs

Process time per HTML ASN

Hours

  1. 0.3

AberdeenGroup

Aberdeen: eProcurement: Trials and Triumphs

Process time per EDI ASN

$

Process time per cXML ASN

Hours

  1. 0.2

AberdeenGroup

Aberdeen: eProcurement: Trials and Triumphs

Process time per paper Invoice

Hours

  1. 0.4

AberdeenGroup

Aberdeen: The e-Payables Benchmark - Advancing Accounts Payable Automation

Process time per PO-FlipTM Invoice

Hours

  1. 0.35

AberdeenGroup

Aberdeen: The e-Payables Benchmark - Advancing Accounts Payable Automation

Process time per EDI Invoice

Hours

  1. 0.25

Process time per cXML Invoice

Hours

  1. 0.22

Aberdeen Group

Aberdeen: The e-Payables Benchmark - Advancing Accounts Payable Automation

Process time per paper catalog

Hours

80

Direct Marketing Assn

DMA: DMA 2009 Statistical Fact Book, 31st edition and Ariba Estimate

Process time per CIF Catalog per Year

Hours

144

Client case study

September 2010 analysis with Insight

Process time per PunchOut Catalog

Hours

2

Direct Marketing Assn

DMA: DMA 2009 Statistical Fact Book, 31st edition and Ariba Estimate

Cost per Catalog: Production and mailing

$

  1. 1.75

Direct Marketing Assn

DMA: DMA 2009 Statistical Fact Book, 31st edition and Ariba Estimate

Order mgt/customer service salary

$

45,000

Midwest industry averages industry study

Customer data

Catalog mgr salary

$

68,000

Direct Marketing Association

DMA: DMA 2009 Statistical Fact Book, 31st edition

Account receivables rep salary

$

50,000

IOMA

IOMA Handbook of Logistics and Industry Management

VAN Costs per kilocharacter

#

Avg Kilocharacters per doc

$

1.6

Customer study of VAN charges in electronics industry

Storage costs

%

30%

Customer study of VAN charges in electronics industry

CIF accuracy improvement

%

6%

Ariba customer case study

PunchOut accuracy improvement

%

60%

Ariba customer case study

Paper PO error rate

%

15%

Aberdeen Group

Aberdeen: eProcurement: Trials and Triumphs

HTML PO error rate

%

10%

Aberdeen Group

Aberdeen: eProcurement: Trials and Triumphs

EDI PO error rate

%

9%

Aberdeen Group

Aberdeen: eProcurement: Trials and Triumphs

cXML PO error rate

%

7%

Aberdeen Group

Aberdeen: eProcurement: Trials and Triumphs

Paper Invoice error rate

%

4%

Hackett Group

Hackett: Five Strategies for Maximizing Customer Adoption of Electronic Invoice Presentment and Payment

HTML Invoice error rate

%

  1. 2.25%

Hackett Group

Hackett: Five Strategies for Maximizing Customer Adoption of Electronic Invoice Presentment and Payment

EDI Invoice error rate

%

  1. 2.00%

Hackett Group

Hackett: Five Strategies for Maximizing Customer Adoption of Electronic Invoice Presentment and Payment

cXML Invoice error rate

%

  1. 1.70%

Hackett Group

Hackett: Five Strategies for Maximizing Customer Adoption of Electronic Invoice Presentment and Payment

Cost of A/R inquiry/dispute resolution

$

$276

Aberdeen Group

Delivering Customer Service Via the Contact Center and the Web

Cost of customer service inquiry/dispute resolution

$

$276

Aberdeen Group

Delivering Customer Service Via the Contact Center and the Web

Time to resolve PO errors (data entry)

$

  1. 0.3

Payments Views

PaymentsViews: Erin McCune - http://paymentsviews.com/2008/04/16/business-drivers-for-payment-automation-tawpi-conference/

Time to resolve Invoice errors (data entry)

$

  1. 0.3

Payments Views

PaymentsViews: Erin McCune - http://paymentsviews.com/2008/04/16/business-drivers-for-payment-automation-tawpi-conference/

DSO with paper-based PO's

# of Days

52

AMR Research

Benchmarking B2B E-Business: The Value Is in There

DSO with electronic PO's

# of Days

46

AMR Research

Benchmarking B2B E-Business: The Value Is in There

DSO with paper-based invoices

# of Days

46

Hackett Group

Five Strategies For Maximizing Customer Adoption Of Electronic Invoice Presentment And Payment

DSO with electronic invoices

# of Days

33

Hackett Group

Five Strategies For Maximizing Customer Adoption Of Electronic Invoice Presentment And Payment