Advances in both information technology and the practice of logistics performance measurement have enabled firms to more directly tie logistics performance measures to customer satisfaction. Implementing perfect order measurement is one approach for making this connection. The perfect order rate is the percentage of orders that precisely meet customer expectations. Measuring perfect order performance typically requires coordination across a variety of functional areas such as transportation, distribution, and accounting. This article presents challenges encountered by a variety of firms attempting to implement perfect order measurement. Three basic questions are addressed: What should be the definition of a perfect order, once a definition is determined; What are the challenges in implementing perfect order measurement; and finally, How should firms use perfect order measurement to analyze and improve performance? For each challenge presented, potential remedies are discussed.
|Original language||English (US)|
|Number of pages||12|
|State||Published - Dec 2004|
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