Order Management KPIs, Metrics & Benchmarks

KPIs & Metrics to Measure and Manage Order Management Performance

Order Management

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KPI's & Data 

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Management Levels: Order Management

The total number of management levels, or layers, in the Order Management function.

KPI Type : Organizational

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Organizational Structure: Order Management

A yes/no metric indicating whether the Order Management function is centralized (all employees in a single location) or decentralized.

KPI Type : Organizational

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Total Employees: Order Management

The total number of employees working within the Order Management Department at a certain point in time. Employee headcount may be segmented by function (i.e., the Return Processing function...

KPI Type : Organizational

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Order Demand Forecast Accuracy

The number of actual order demands that match the forecasted demand projections for a product divided by the total number of actual order demands made over the same period of time, as a perc...

KPI Type : Quality

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Order Cancellation Rate

The number of customer orders that are canceled by the customer after being placed divided by the total number of orders placed over the same period of time, as a percentage.

KPI Type : Quality

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Percentage of Orders Requiring Construction

The number of product orders that require the combination of multiple components prior to shipment divided by the total number of orders placed over the same period of time, as a percentage.

KPI Type : Quality

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KPI's & Data 

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Cases Picked per Employee

The total number of cases picked in preparation for distribution over a certain period of time divided by the number of employees working on order picking and shipment.

KPI Type : Productivity

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Unit Cost: Order Fulfillment

The total cost of filling customer orders (including order processing, order picking/prep, and transportation; NOT including the cost of goods sold) divided by the total number of customer o...

KPI Type : Cost

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Return Processing Expense as a Percentage of Revenue

The expense incurred through the Returns Processing function divided by the total dollar amount of revenue generated by the company over the same period of time, as a percentage.

KPI Type : Cost

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Overhead Expense as a Percentage of Total Supply Chain Expense

The total expense incurred by the overhead (rent, utilities, maintenance, etc.) within supply chain functions (procurement, materials management, distribution, etc.), not including labor, di...

KPI Type : Cost

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Labor Expense as a Percentage of Total Supply Chain Expense

The total expense incurred by labor (salaries, benefits, etc.) within the company's supply chain functions (procurement, materials management, distribution, etc.) divided by the total expens...

KPI Type : Cost

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Electronic Transaction Expense as a Percentage of E-Commerce Sales

The expense related to processing electronic payments from customers (i.e., fees associated with processing electronic payments, etc.) divided by the total dollar amount of sales generated t...

KPI Type : Cost

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Unit Cost: Price Confirmation

The total cost of providing price confirmations divided by the total number of price confirmations provided over the same period of time.

KPI Type : Cost

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Unit Cost: Quote Generation

The total cost of generating price quotations for customers divided by the total number of quotations, or quotes, generated over the same period of time.

KPI Type : Cost

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Unit Cost: Order Change

The total cost of correcting or changing customer orders divided by the total number of customer orders changed or corrected over the same period of time.

KPI Type : Cost

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Customer Returns and Allowances as a Percentage of Sales

The total dollar value of sales adjustments that represent merchandise returns from customers, and deductions to the original selling price when the customer accepts defective products divid...

KPI Type : Cost

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KPI's & Data 

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Total Volume: Orders Received

The total number of customer orders received by the Order Management Department over a given period of time.

KPI Type : Volume

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Cycle Time: Backorder Shipment

The number of business days required to ship a customer's backordered item, from the time the customer places the order (that is initially backordered) until when the backordered item is shi...

KPI Type : Service

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KPI's & Data 

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Percentage of Orders Requiring Rework

The number of orders that require additional work after the initial pick and packaging process has been completed (typically due to an error or oversight) divided by the total number of orde...

KPI Type : Quality

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KPI's & Data 

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Total Employees: Return Processing

The total number of employees working within the Return Processing function at a certain point in time. Employee headcount may be segmented by location, product or team.

KPI Type : Organizational

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KPI's & Data 

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Organizational Structure: Return Processing

A yes/no metric indicating whether the Return Processing function is centralized (all employees in a single location) or decentralized.

KPI Type : Organizational

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Span of Control: Return Processing

The average number of Return Processing employees reporting to each manager working within the Return Processing function.

KPI Type : Organizational

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KPI's & Data 

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Management Levels: Return Processing

The total number of management levels, or layers, in the Return Processing function.

KPI Type : Organizational

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KPI's & Data 

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Order Management Expense as a Percentage of Total Expense

The expense incurred by the Order Management Group divided by total expense incurred by the company over the same period of time, as a percentage.

KPI Type : Cost

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KPI's & Data 

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Return Processing Employees as a Percentage of Total Order Management Employees

The number of employees working within the Return Processing function divided by the total number of employees working within the Order Management Group at the same point in time, as a perce...

KPI Type : Organizational

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KPI's & Data 

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Warranty Claims as a Percentage of Sales

The expense incurred through fulfilling customer warranty claims over a certain period of time divided by total revenue generated through the sales of the same products, as a percentage.

KPI Type : Quality

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KPI's & Data 

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Unit Cost: Customer Return

The total cost of processing customer returns divided by the total number of customer returns processed over a certain period of time.

KPI Type : Cost

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KPI's & Data 

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Percentage of Human-Related Order Errors

The number of customer order processing errors attributed to representative mistakes (i.e., human errors) divided by the total number of order processing errors detected over the same period...

KPI Type : Quality

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KPI's & Data 

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Percentage of Process-Related Order Errors

The number of customer order processing errors attributed to flaws within order fulfillment processes (e.g., erroneous information or documentation is asked for, not enough information is pr...

KPI Type : Quality

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Warranty Cost as a Percentage of Total Revenue

The dollar amount spent fulfilling warranty claims divided by the total revenue generated by the company over the same period of time, as a percentage.

KPI Type : Cost

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