Part Sales as a Percentage of Plant Revenue
Metric Details & Benchmarking Report Download
KPI Benchmarks : Part Sales as a Percentage of Plant Revenue
- Benchmark Range
- Benchmark Average
- Benchmark Sample Size (n) 48
* Is High or Low Best: Higher is Better
Part Sales as a Percentage of Plant Revenue
KPI Details
Part Sales as a Percentage of Plant Revenue measures the dollar amount of revenue generated through the sale of parts (includes change or replacement parts/components) manufactured by the plant in relation to the dollar amount of revenue generated by the plant, or production facility, over the same period of time. A low value for this metric may be related to multiple factors, including inefficient lead generation and sales processes, poor marketing and advertising strategies, increased scrap rate due to errors or defects (i.e., the more products being scrapped, the less are being sold), inaccurate demand forecasting methods and sub-par sales and production employee training and performance. Excessively low values can expose the company to financial risks by preventing on-time payoffs of liabilities.
KPI Definition
The dollar amount of revenue generated through the sale of parts (including change or replacement parts/components) manufactured by the plant divided by the total dollar amount of revenue generated by the plant, or production facility, over the same period of time, as a percentage.
KPI Best Practices
- Form relationships with buyers who will purchase unneeded raw materials inventory
- Maintain effective pricing levels to move goods quickly and profitably
- Implement effective market research and lead generation to understand viability of parts sales market
KPI Calculation Instructions Part Sales as a Percentage of Plant Revenue?
Two numbers are used to calculate this KPI: (1) the dollar amount of revenue generated from the sale of parts manufactured by the plant, and (2) the total dollar amount of revenue generated by the plant, or production facility, over the same period of time. The parts manufactured and sold by companies can include change or replacement parts/ components (e.g., car parts, screws, window panes, etc.) as well as raw materials directly used to manufacture a product (e.g., lumber, paper, etc.). Do not include indirect raw materials (e.g., wood finish placed on a manufactured chair, etc.) in this calculation.
KPI Formula :
(Part Sales Generated / Plant Revenue Generated) * 100
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