Perfect Customer Order Rate

Perfect Customer Order Rate

KPI Details

Perfect Customer Order Rate is an overall measure of the quality, accuracy and completeness of customer shipments. A low value for this KPI can indicate a number of problems along the delivery supply chain such as poor material handling, inaccurate demand forecasting, error-prone order entry processes, ineffective order packaging methods, understaffed loading docks, inefficient inventory management, etc. Any delivery issues related to timeliness, completeness or damaged goods are going to have a negative effect on customer relationships and can lead to customer attrition, especially if the issues are not minimized over time. High performers for this KPI tend to track and document the separate components (i.e., on-time delivery rate, complete shipment rate, undamaged shipment rate and correct documentation rate) of Perfect Customer Order Rate and identify root causes of problems in order to mitigate future problems.

KPI Definition

A composite score calculated by multiplying average on-time delivery rate, complete shipment rate, undamaged shipment rate and correct documentation rate for a certain period of time or group of shipments, as a percentage.

KPI Best Practices

• Accurate demand forecasting and minimal backorder rates
• Well defined materials management and freight handling procedures to minimize damage
• Frequently review customer database to ensure records are up-to-date

KPI Calculation Instructions Perfect Customer Order Rate?

Four values are used to calculate this KPI: (1) On-Time Customer Order Delivery Rate ((Complete Orders Delivered On-Time / Total Orders Delivered) * 100), (2) Complete Customer Order Rate ((Complete Customer Orders Delivered / Total Customer Orders Delivered )*100) , (3) Undamaged Customer Order Rate ((Customer Orders Delivered Damage-Free / Total Customer Orders Delivered) * 100), and (4) Percentage of Customer Orders with Correct Documentation ((Customer Orders with Correct Documentation / Total Customer Orders Delivered) * 100). Simply multiply these four values to calculate Perfect Customer Order Rate.

KPI Formula :

On-Time Customer Order Delivery Rate * Complete Customer Order Rate * Undamaged Customer Order Rate * Percentage of Customer Orders with Correct Documentation