GITNUX MARKETDATA REPORT 2023
Must-Know ERP Metrics
Highlights: The Most Important Erp Metrics
- 1. Order-to-Cash Cycle Time
- 2. Days Sales Outstanding (DSO)
- 5. On-time Delivery
- 6. Perfect Order Rate
- 7. Purchase Order Cycle Time
- 8. Return on Assets (ROA)
- 9. Return on Equity (ROE)
- 10. Return on Investment (ROI)
- 11. Supplier Lead Time
- 12. Total Cost of Ownership (TCO)
- 13. System Uptime
- 14. User Adoption Rate
Table of Contents
Erp Metrics: Our Guide
Understanding and leveraging ERP metrics can dramatically improve the functionality and efficiency of your business operations. In this blog post, we’ll dive into the most critical ERP metrics you should keep on your radar. Learn how to utilize these invaluable tools to optimize your ERP system, streamline your business processes, and enhance your decision-making strategies.
Order-To-Cash Cycle Time
Order-to-cash cycle measures the time from order to payment. It evaluates order processing, manufacturing, and billing efficiency.
Days Sales Outstanding (DSO)
Days sales outstanding (DSO) measures the average time it takes to collect customer payments. It assesses credit and collection policy effectiveness.
Inventory turnover measures how often inventory is sold or used, indicating demand forecasting, supplier management, and manufacturing efficiency.
It measures the percentage of orders delivered to customers on or before the committed delivery date. It helps assess supply chain effectiveness and customer satisfaction.
Perfect Order Rate
Perfect order rate measures complete, on-time, and accurate deliveries, indicating efficient order management and customer satisfaction.
Purchase Order Cycle Time
This metric measures the average time taken from the initiation of a purchase order to its completion. It helps evaluate the efficiency of procurement processes and supplier relationships.
Return On Assets (ROA)
ROA is the ratio of net profit to total assets, showing how efficiently and effectively management is using company assets to generate profits.
Return On Equity (ROE)
ROE is the ratio of net income to shareholder equity, indicating the company’s ability to generate profits for shareholders.
Return On Investment (RO!)
ROI measures the benefit an investment will provide in return for the investment’s cost. Higher ROI indicates a better return on investments made in the business.
Supplier Lead Time
Supplier lead time measures the time suppliers take to deliver after receiving a purchase order.
Total Cost Of Ownership (TCO)
TCO measures all costs of an ERP system, helping choose the most cost-effective vendor.
This metric measures the percentage of time an ERP system is available and operational. High system uptime is critical for operational efficiency and employee productivity.
User Adoption Rate
User adoption rate measures ERP system adoption and usage, indicating training, support, and system effectiveness.
Frequently Asked Questions
What are ERP Metrics?
What are some common ERP Metrics used by organizations?
How do businesses benefit from using ERP Metrics to analyze their systems?
Can ERP Metrics be customized according to the specific needs of an organization?
How often should businesses monitor and analyze their ERP Metrics?
How we write these articles
We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly. See our Editorial Guidelines.