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Average Invoice Value comparisons

Six Sigma – iSixSigma Forums Old Forums General Average Invoice Value comparisons

This topic contains 1 reply, has 2 voices, and was last updated by  Schultz 15 years, 9 months ago.

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  • #33629

    lin
    Participant

    Each month we can record by customer the number of invoices and the volume of sales. This can give us an Average Invoice Value (AIV) by dividing the volume of sales by the number of invoices. This is delivered against each customer and as a company total for each month.
    What I need to formulate is:-
    1. What each customer Average Invoice Value (AIV) is contributing in % terms to the total company AIV for the month
    2. In order, how each of the customers contribute to the change in total company AIV for the month in % terms (adding to 100%) & £ terms
    What we want to know is that how can we determine this. If we see that the company AIV has made a movement from one month to the next, how can we determine which customer had an impact and the size of the impact so that we can then be able to address the key customers on increasing the AIV for those particular customers.
    Can you help with this….? I took a simplistic approach of getting an average between the sales mix and the invoice mix, but was after a more scientific approach as I am not sure this is giving me the correct answer.

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    #91281

    Schultz
    Participant

    Bill,
    For #1: Isn’t the % contribution just the AIV divided by the total company AIV?
    For #2: You can compute the % change from month to month ((current month – next month) / current month). You know what percentage of that is the current month’s AIV. I think you can calculate what you need.
    Charlie

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