australian benchmark initiative

For the inaugural 2011 studies, the Australian Benchmark Initiative focused on the transactional areas of Purchase to Pay, Payroll and Receivables. Each study focused on a range of qualitative and quantitative factors, including the management operating environment, metrics and future strategy.  34 of Australia’s leading organisations chose to participate, providing interesting, as well as some surprising trends. The study was carried out from October to December 2011, and the results were published in February 2012.

Some of the areas touched on in each study were as follows:

The study provides essential insights into the better practice that are driving Australian businesses, and some of the key metrics that can support your business case for change.

Information on how to purchase the studies can be found here.

The following metrics were collected as part of the 2011 study, and are analysed in detail in each of the reports:

Purchase to Pay

1. Invoices per Full Time Equivalent (FTE)
2. Purchase Order penetration (%)
3. Cost per invoice ($)
4. Invoices received centrally (%)
5. Standard trading terms (days)
6. Average Accounts Payable gross salary ($)

Payroll

1. Headcount process per Payroll Full Time Equivalent (FTE)
2. Payments processed per Payroll FTE
3. Cost per payment ($)
4. Timesheets per FTE
5. Error free rate (%)
6. Average Payroll gross salary ($)

Receivables

1. Days Sales Outstanding (DSO)
2. Remittances per AR Full Time Equivalent (FTE)
3. Customer accounts per Collections FTE
4. Percentage of payments received electronically (%)
5. Days referred to Collections agency (days)