One of my colleagues came to me yesterday and gave me a feedback on the blog. He said that the FAO Blog was really getting interesting and better every day. It catered to both lower level of people and also the management groups. He could correlate to a lot of things that he had seen through his career in the BPO world. It was a good morale booster for us.
Also, did you read about the advantages and disadvantages of IFRS? https://faoblog.com/ifrs/intro06/
You should read today’s post in conjunction with Thursday’s post: https://faoblog.com/transition-06/
Now we come to the business metrics required. The client has a very different way of thinking. How he would have defined his metrics will be based on his business requirements. The table below will give you a clear understanding on the difference of the two. I will be giving a few samples at this stage and will cover this in detail when I articulate each function.
Service Requirement Metrics
Service Level Definition
|1||Vendor Payments||To be released as per due date.||Penalties to be limited to $ 20,000 across all payouts in a month.|
|2||Vendor Master||All requests to be uploaded for approval on same day of receipt.||No duplicates to be entered.|
|3||Cash applications||Outstanding Application amount not to exceed $ 2 Million at any time of the month.|
|4||Customer Receivables||The Days Sales Outstanding not to exceed 45 days of sales.||Penalty to be paid by vendor if DSO exceeds 45 days – 0.01% of fees per day of outstanding in excess of 45 days.|
|5||Accuracy of invoice processing to vendors||# of invoice lines with processing errors due to:- Incorrect Vendor Selection- Incorrect Coding
– Incorrect Amount
– Incorrect PO# selection
– Incorrect Receipt selection
95% of all invoice lines processed
|6||Respond to Inquiries||Receive, track, research and resolve inquiries, internal and external with a twenty-four (24) hour response time to inquiries – 98%|