Overview – Is your Perfect Order rate less than perfect? If so, what areas of your extended supply chain warrant the most improvement? Through Supply Chain Visibility solutions, not only can your Perfect Order Fulfillment rate be measured, it can be improved.
Introduction – The quest of a perfect order is comprised of a journey filled with constant movement and activity, perfectly aligned until reaching the final destination in perfect condition. The odds against fulfilling a perfect order almost seem overwhelming when considering the complexities of an extended supply chain. Fortunately, supply chain companies have continued to take advantage of process improvements and technology solutions that have steadily improved the success rate for perfect orders.
Supply Chain Visibility solutions have become an affordable and integral partner in achieving increased Perfect Order rates. Enhanced visibility across the total supply chain provides the ability to measure key indicators, monitor process improvements, and maintain supply chain performance.
What is a Perfect Order?
The demand for perfect orders is intense among consumers — and for good reason. Consumers want what they ordered, when they wanted it, for the price they wanted, and in good condition. Any deviation from these expectations likely results in lost customers in the future.
The Supply Chain Council describes Perfect Order Fulfillment as a discrete measurement defined as the percentage of orders delivered to the right place, with the right product, at the right time, in the right condition, in the right package, in the right quantity, with the right documentation, to the right customer, with the correct invoice. Failure to meet any of these conditions results in a less than perfect order.
The requirements for a perfect order can seem daunting; yet despite the challenges, companies can achieve high Perfect Order rates. The Perfect Order rate has become an important indicator in measuring supply chain performance. Companies that boast some of the highest Perfect Order rates carry less inventory, experience a shorter cash-to-cash cycle time, and have significantly less stock-outs when compared to their competitors. The cost of imperfect orders leads to increased labor costs for shipping, providing replacement product, and decreased revenue due to lost sales and customers. By minimizing imperfect orders, greater efficiencies and increased customer satisfaction can be obtained.