How can you measure logistics performance using order fill rate?
Logistics performance is a key indicator of how well your supply chain is meeting customer expectations and delivering value. One of the most common and simple metrics to measure logistics performance is order fill rate (OFR), which shows the percentage of customer orders that are fulfilled from available inventory. In this article, you will learn what order fill rate is, how to calculate it, why it is important, and how to improve it.
-
Accurate calculations:To measure logistics performance using order fill rate, divide the number of complete and on-time orders by the total orders. This reflects your supply chain's efficiency and customer satisfaction level.
-
Track over time:Regularly monitoring your fill rate helps spot trends and improvement areas in your logistics. An upward trend indicates better inventory management and customer service.