Subscribe to our free, weekly email newsletter!


Using Technologies to Increase Perfect Order Metrics


July 26, 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.


Download this paper:
Using Technologies to Increase Perfect Order Metrics
Sponsored by:
image
* Indicates a required field
*Email:
*First Name:
*Last Name:
*Title:
*Company:
*Country:
*Address 1:
Address 2:
*City:
*State:
Province/Region:
*Zip/Postal Code:
*Phone Number:

*What type of distribution center do you operate?
Wholesale
Retail
Manufacturing
3PL Provider
Other

 
*What best describes your job function?
Executive Management
Transportation Management
Distribution Management
IT Management
Purchasing Management

Save my data on this computer (do not use on public/shared computers)

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

In this webcast we'll explore how successful companies use strategies such as cross-client load consolidation, zone skipping, pooling, etc. to minimize freight cost. You’ll hear how transportation optimization is used to generate cost savings and where the ROI comes from.

Even with expected import cargo volume declines in the coming months, the Port Tracker report by the National Retail Federation (NRF) and maritime consultancy Hackett Associates expects volumes to be up for the first half of 2016.

USPS pointed to ongoing growth in its Shipping and Package Group, whose primary offerings are comprised of Priority Mail, Express Mail, Parcel Select and Parcel Return services, as the key driver for the quarterly revenue gains.

With a 2.3 cent decline to $2.008 per gallon, this week’s price stands as the lowest national average going back to the week of March 16, 2009, when it checked in at $2.017.

A recent Wall Street Journal report stated that third-party logistics and freight transportation services provider XPO Logistics shut down seven freight terminals that were part of the Con-way Inc. less-than-truckload (LTL) network, Con-way Freight. Con-way was acquired by XPO for $3 billion last year.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA