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Customer Order Management |
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Page 3 of 7
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%)
Imperfect orders were defined as being:
- Containing incorrect quantities
- Having correct parts but incorrect labelling
(Gould, 2003)
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