Using Technologies to Increase Perfect Order Metrics

Companies are continually finding new ways to get the right goods to the right customers at the right time, and have developed many metrics to measure their performance in these areas. Perfect Order is a popular metric that measures customer orders that arrive complete, on time, undamaged and with an accurate invoice. This white paper explains how each aspect of perfect order performance can be improved through enhancements to data collection processes and technologies.

By · August 1, 2011

Companies are continually finding new ways to get the right goods to the right customers at the right time, and have developed many metrics to measure their performance in these areas. Most of these metrics show distribution productivity and accuracy are improving over time, which keeps raising the bar for service levels. For example, from 2007 to 2008, companies reduced their average days on hand of finished goods inventory from 35 days to 28, reduced dock-to-dock cycle time by 2.5 hours, and reduced days of sales outstanding from 40 days to 35, all while maintaining 98 percent fill rates.

Customers demand continuous improvement, and markets reward it. In 2007 the 25 companies with the best supply chains (as measured by AMR Research) greatly outperformed the S&P 500, producing an average total return of 17.9 percent, compared to 3.5% for the S&P.2 Companies with perfect order rates (a popular metric that measures customer orders that arrive complete, on time, undamaged, and with an accurate invoice) of 80 percent or higher are three times more profitable than companies with perfect order rates of 60 percent, a separate AMR Research study found.3 Better perfect order performance also correlates strongly to higher corporate earnings per share (EPS) and return on assets (ROA), the same study found.

This white paper explains how each aspect of perfect order performance can be improved through enhancements to data collection processes and technologies.


Subscribe to Modern Materials Handling Magazine!

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Latest Whitepaper
Capturing Labor, Space, and Accuracy Returns with AS/RS
Find out how the demand of e-commerce and digital age expectations are driving the need to automate material handling with AS/RS solutions to improve labor productivity, save space, and reduce costs associated with inaccurate picks
Download Today!
From the November 2017 Modern Materials Handling Issue
A new facility, iPhones and a new WMS allowed cookware manufacturer Lodge to double its business for the fourth time in 20 years and shorten order delivery time from 10 days to three.
10th Annual Salary Survey: The Price of Performance
Let’s put Automatic Data Capture (ADC) Technology to Work
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
The State of the DC Voice Market
A lot has changed in the last 10 years, especially in voice technology. This webinar will cover the state of the voice market, review two leading voice solutions and help you gain a better understanding of the options and capabilities available today.
Register Today!
EDITORS' PICKS
Lodge Manufacturing: Distribution Cast in Iron
A new facility, iPhones and a new WMS allowed cookware manufacturer Lodge to double its business for...
Rochester Drug Cooperative: Robots ready for work
It’s still early stages, but Rochester Drug Cooperative is proving that mobile robotic piece...

System Report: Pouch sorter powers Stage’s fulfillment needs
How a hometown department store chain transformed its e-fulfillment processes with pouch sortation...
Cubing and Weighing Equipment: Measure Up
The use of cubing and weighing equipment is growing beyond dimensional weight applications.