After LILO, LIFO, OEE, OTIF, DITOF and OEE, I would like to talk today, in the expectation that the second part of THE PROJECT will be ready, about two other important KPIs of the supply chain:
Order Accuracy Rate and Lead Time
The Order Accuracy Rate refers to the percentage of orders that are accurately fulfilled by a company or organization. This metric is usually calculated by dividing the number of accurately fulfilled orders by the total number of orders and multiplying the result by 100. For example, if a company fulfills 900 orders accurately out of a total of 1000 orders, the order accuracy rate would be 90%.
Order accuracy rate is an important performance metric for companies that rely on order fulfillment, such as online retailers and logistics companies. High order accuracy rates are an indicator of efficient and reliable operations, and can help build customer trust and loyalty. On the other hand, low order accuracy rates can lead to customer dissatisfaction, returns, and lost sales.
To improve order accuracy rates, companies can invest in better inventory management systems, improve order processing and tracking procedures, provide employee training, and use technology such as barcode scanners and automated picking systems.
The second KPI would like to tell you about today is the Lead Time, it is a metric used to measure the time taken to complete a process, from the moment a request is made until the final product or service is delivered to the customer. It is an essential metric for businesses that aim to improve their efficiency and customer satisfaction.
Lead time KPI is calculated by measuring the time taken for each stage of the process, including processing time, production time, and delivery time. This metric can be used to identify bottlenecks in the process, improve the efficiency of the production line, and reduce the time taken to deliver goods or services to customers.
The lead time KPI is an important metric for businesses that want to remain competitive in their industry. By monitoring and improving this metric, businesses can increase their productivity, reduce costs, and improve customer satisfaction.
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