The Best KPI: The Probability of a Perfect Order
Perfect Order is a very important performance metric, which simply means what is going on in your business and how satisfied your customers are with the services you provide to them and the delivery of orders completely, correctly and on time is a very important key performance indicator, and it can be said. As the best performance measure, and in this article on LOGSTIAT logistics solutions, we will explain what is meant by Perfect Order, and what the factors necessary to obtain a perfect order are.
What is a perfect order?
As we indicated in the introduction, the perfect order is one of the important metrics that reveal to you what is happening in your business and also explain to you the percentages of customer satisfaction with the services you provide to them.
And we can say that it is a measure to clarify the success of the business that you do, we call any order a perfect order in the event that an order has been delivered to the customer in a final, accurate and on time exactly, that is, without any errors or defects.
Consequences of Incomplete Orders
Incomplete orders will have many consequences, as:
- Increase your business costs.
- The need to give the customer a replacement item as compensation.
- Loss of many deals and clients.
- Decrease in your revenues and sales of your company.
Factors needed to obtain perfect order
There are many factors that will help you in getting a perfect order and the following are the most important factors that you can take advantage of:
Order Entry Accuracy
The first thing you will need to measure in order management to check the perfect order is the accuracy of entering orders into your systems. Of course, you receive more phone calls and requests from your online store, so are you entering them into your systems accurately?
In the event that your customers obtain high order entry accuracy, this means a decrease in error rates and thus an increase in the satisfaction of your customers, which will reflect positively on the performance of your company and your leadership as well.
One of the most important things that you should take care of measuring permanently is the extent of your inventory availability, the first thing you must take into account when a customer orders a product from you is that product available in that required quantity in my store? Thus taking care of gauging your stock availability will assist you in achieving a perfect order.
DIFOT service level
The level of service is measured by the ability of your warehouse management to carefully select the required product, then package it and prepare it to be sent to the customer on time.
If the level of service is low, this will negatively affect your organization and its reputation in general, meaning that a high level of service means achieving a perfect order.
The Transport Company’s DIFOT
When you succeed in delivering the transport company in full and at the agreed time, this is wonderful, and neglecting it and not paying attention to it or measuring it periodically will have serious consequences for you.
The Customer Acceptance Order
Do you have returns? Do customers refuse to receive their orders? Of course and in a large proportion there are problems with their requests.
And that makes them refrain from receiving the order, clients accept their requests if they are not damaged and also identical with what they actually requested.
Invoices Paid on Time
One of the most important factors that will help you achieve a perfect order is measuring how well your bills are paid on time, as you will need to gauge whether the invoices are paid on time or there is a delay in payment.
Assessing Your Performance
In order to be able to get the most accurate picture of your business performance, you need to evaluate your performance continuously and periodically, and if your ideal order rate is low, you must think about ways that will increase your performance so that you can reach the perfect order.
Righting the Wrongs
In order to be able to correct mistakes and avoid their recurrence, you will need to train your team to continuously improve your inventory, which will positively affect general metrics and not just achieving perfect orders.