Monday, 8 December 2014

How to Deliver the Perfect Order – Metrics for Evaluation

There are different quantifiable metrics that can be used to monitor the success of your perfect orders. The five metrics cover five key areas:
  • Satisfaction: The stakeholder satisfaction percentage is a great general metric and the percentage should be high.
  • Order capture: By collecting the percentage of accurate captured orders gives you a view of how well the requirements have been met. If you have low percentages it shows there is poor order capture support. When you’re able to show high values the metrics support a sophisticated order management process with higher accuracy.
  • Order capture to order fulfillment: The percentage of the orders fulfilled within time constraints shows the efficiency of the order fulfillment.
  • Order fulfillment to order completion: The values from this metric show how many of the orders were completed on the first go and this reflects how the requirements of the customers are met. If there are low values this indicates that there is a lack of satisfaction.
  • Order completion to order settlement: The percentage of the invoices that have been received within the net time shows the ability or inability to deliver accurate invoices.
Using these five metrics you can create the perfect order index by multiplying together the percentages of:
  • Satisfied customers
  • Accurate orders captured
  • Orders fulfilled on time
  • Orders completed first time
  • Invoices received within net time


  1. What could be a benchmark index for the Perfect Order metrics ? ... 0.85 ?

  2. Depending on the company, industry and their requirements, it may vary. There was a benchmarking study done by AMR Research, Boston that show there is a correlation between improved perfect-order performance and overall corporate results. According to AMR, by raising perfect order scores by 5 percentage points correlates with a 2.5 percent improvement in return on assets, a 3 percentage point improvement correlates with a 1 percent increase in profit margin, and a 2 percentage point jump correlates with a 10-cent increase in earnings per share.