Download the calculator I put together while writing the series that examines how much it costs to process an order.
I was tasked with analyzing the average costs of processing an order through its various stages from Purchase Order (PO) creation through to invoice closure.
I decided that my starting point would be the concept: time is money. I had to figure out:
I started off trying to find studies that would answer the question for me at each step of the process. But there were no studies that discussed every step, and there were no studies that presented the same numbers for any one step.
I decided to base everything on active working hours to complete a task, vs. elapsed duration. So instead of the three weeks it can take to process an invoice, for example, I wanted to use the actual time spent working with the invoice (which is considerably shorter).
Posts in the Series
There are six posts in the series that discuss how I came up with my numbers at every step. You can find those posts at the following links:
1st post: http://www.p2insight.com/blog/how-much-does-it-cost-to-process-an-order
2nd post: http://www.p2insight.com/blog/how-much-does-it-cost-to-process-a-purchase-order-internally
3rd post: http://www.p2insight.com/blog/calculating-the-cost-to-process-a-po-externally
4th post: http://www.p2insight.com/blog/calculating-the-cost-to-expedite-an-order
5th post: http://www.p2insight.com/blog/calculating-the-cost-to-receive-an-order
6th post: http://www.p2insight.com/blog/rewrite-calculating-the-cost-to-process-an-invoice
Are you at InterConnect this week? Do you use Maximo?
If so, be sure to meet up with Mike Popovic, P2Insight's President and founder, to learn about how we're modernizing Maximo purchasing and connecting you to 3rd party organizations with The Order Hub.
Sign up for a meeting time here.
And enjoy Vegas!