perfect order

Perfect Order Measurement: As with most other Supply Chain Metrics, there are many variations to this measurement.
The Perfect Order Measure calculates the error-free rate of each stage of a Purchase Order. This measure should capture every step in the life of an order. It measures the errors per order line.
But how do you capture errors? Let's look at what happens when an error occurs. Say for example, your warehouse picks and ships the wrong item. Once the customer receives the order and notices the error, they contact the manufacturer and notify them of the mistake. The manufacturer then enters a credit for the item not shipped and an invoice for the item shipped in its place. For almost all errors that occur, a corrective credit is issued. It is through an analysis of these credits that you derive your metric. Most systems require a "reason code" to be used when entering a credit. Tracking these reason codes and assigning them to a category allow you to group them for the Perfect Order Measure.
Example:

Order Entry Accuracy: 99.95% Correct (5 errors per 10,000 order lines)
Warehouse Pick Accuracy: 99.2%
Delivered on Time: 96%
Shipped without Damage: 99%
Invoiced Correctly: 99.8%

Therefore, the Perfect Order Measure is 99.95% * 99.2% * 96% * 99% * 99.8% = 94.04%

There may be other fields used such as "The Sales Representative recommending the correct item" or the "FillRate".

Our goal is to guide companies that are looking to optimize their Supply Chain. Unfortunately, we do not currently have the resources to answer individual questions.
Contact: john@supplychainmetric.com

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For information on Inventory Turns, Fill Rate Measurement, Backorder Reporting or any other Supply Chain Metric, click on the links to the left. The text that appears on this website is the opinion of the webmaster. Metrics may or may not be uniform across all industries. All data listed here may be used as a general guide, but it's accuracy is not guaranteed. Please consult a qualified Supply Chain professional for more details on Supply Chain Measurements. Other Supply Chain Websites
This site is owned and maintained by Michelle Taras & John Taras CPIM, PMP

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VendorManagedInventory.com - information on Vendor Managed Inventory
InventoryTurns.com - additional information on how to calculate inventory turns or inventory turnover.
SupplyChainManagementNews.com - News stories about Supply Chain Management
SupplyChainDefinitions.com - various definitions of supply chain terms
SupplyChian.com - various supply chain info (yes, i know it's mis-spelled)
SupplyChainPurchasing - a new site Michelle is developing. All about Supply Chain Purchasing.

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DangerousTricks.com - my 14 year old son is working on his first website. The site has video's of people doing extreme stunts.