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Customer Order Management
Article Index
Customer Order Management
Expert Opinion
Survey and Research
Example Cases
Measure and Evaluate
Summary
References

Survey and Research Data

A survey of U.S. manufacturers concerning COM practices revealed the following results:

  • 40% reported a significant positive impact on business from COM, 42% a moderate impact
  • 80% felt that tracking order management was worthwhile. However more than half were unsure what their order processing costs were.
  • 55% of companies with customer retention rates of 80% or greater used real-time customer order tracking, and that group was also using real-time customer order data to reserve inventory (44%) and capacity (26%)
  • Customer service was most often cited by respondents as a reason to invest in e-business
  • 65% reported collaborating with all customers - the telephone and fax were seen as vital collaboration tools
  • (49% used phone or fax as their primary collaboration tools)
  • Other tools included e-mail (16%) and conventional EDI (14%)
    (Vinas, 2002)
An AMR Research survey concerning the quality of order fulfilment in the automotive manufacturing industry discovered that the best of Tier 1 automotive suppliers came close to providing 100% perfect orders with 98% to 99% of orders being supplied without defect. Supplier performance ranging from best to worst revealed only a 6% differential. However the Tier 1 automotive suppliers who produced the best results reported using more:
  • Packaged software applications and systems (50%)
  • Best Practices (100%)
  • E-business (20%)

Imperfect orders were defined as being:

  • Late
  • Of poor quality
  • Damaged
  • Having incorrect parts
  • Containing incorrect quantities
  • Having correct parts but incorrect labelling
    (Gould, 2003)

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