From performance to portfolio analysis: Analyze processes in order handling
What do you need for the successful, automated analysis of your business processes? Data, digital processes and an effective Process Mining tool like LANA. So far so good. But where does one start with such a project? While explorative analyses are quite possible, one step is indispensable for the strategic use of Process Mining: the preparation of analysis questions.
Questions like these give your process analysis direction. You don’t just blindly feel your way through the collected data. Instead, you focus your analysis on exactly those areas of the process that are relevant for answering your analysis questions.
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Use Case: Order Handling
One of the most profitable application fields for automated process analysis is order handling. From Order-to-Cash and Accounts Receivable to Drop Shipment and supplier-focused processes – effective order handling is crucial for the competitiveness of any company. Start with a look at the following areas.
A logical approach for the analysis and optimization of order handling is to look at the product or service portfolio. The more you know about the ordering process from the customer side, the more effective and attractive you can design the Customer Journey. This will activate new customers and increase the trust of existing ones.
Possible analysis questions in Portfolio Analysis:
Which products or services are ordered most frequently, which least frequently?
Which order channels perform best?
Which payment method is most frequently used by customers?
Although the processes behind the scenes are usually invisible to customers, they still have a major impact on the positive or even negative impression customers get after placing an order. Automation leads to faster processes and therefore better handling, but the accounting has to be accurate.
Possible analysis questions in Order Entry:
How many invoices are created without a purchase order being created in the system?
How many orders are processed without an associated invoice?
What is the level of automation in order entry?
Cancellation and complaints are part of daily business in order handling. But a cancelled purchase does not mean a lost customer – quite the opposite in fact. The fast and efficient processing of cancellations and complaints can greatly enhance customer loyalty. It is therefore important to pay special attention to this process area as well.
Possible analysis questions in Cancellations:
What are the most common reasons for cancellations?
How often do cancellations occur within certain product lines?
How many days after order entry do cancellations usually occur?
With all the detailed considerations, you should not forget to keep an eye on the overall process. It is worth measuring the performance of the process end-to-end in order to identify both positive trends and clear optimization potential at an early stage.
Possible analysis questions in Performance:
How long does the order processing take on average?
How long are waiting times and idle times in order processing?
How much time elapses between order entry and final payment?