Perfect Order Metrics Performance

In ecommerce, success does not come from merely fulfilling an order and shipping it to the customer. Rather, it comes from delivering the perfect order: accurate, on time, and damage-free.

Perfect order metrics are key performance indicators (KPI) that measures supply chain efficiency. By measuring perfect order metrics, you can determine the perfect order rate. 

Learn the KPIs that measure perfect order performance, and how ShipBob can help you track, calculate, and increase order accuracy through supply chain optimization.

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Order metrics you need to track

Perfect order metrics help you to determine how accurate orders are being fulfilled, shipped, and delivered based on several different factors. Here are the four order metrics you’ll need to measure in order to calculate perfect order rate. 

1. Orders arrive damage-free

Damaged products are a huge pain point for merchants, as they are often outside of their control, can affect customer satisfaction, and are very costly for high-quality products. Once an order is shipped and is in the carrier’s hands, what happens during last-mile delivery is often out of your control. But there are precautions you can take to prevent shipping damage, such as adding enough dunnage or choosing the correct box.

If you’re having a problem with shipping damages, make sure to record every damaged package, the type of damage, how it happened, and take steps to prevent these damages from reoccurring.

2. Orders delivered on time

Another metric to follow is on-time deliveries. There are several ways to ensure orders arrive on time, including offering different shipping options for customers and choosing the right carriers to partner with. You can better manage on-time deliveries by tracking carrier trends, but since so many factors can cause delays in shipping, it’s important to make sure you have a system in place to track orders, so you can communicate with customers and keep them up to date. 

3. Orders filled accurately

Nothing is more frustrating to customers than receiving a much-awaited order only to find that it’s the wrong order at their front door. Perfecting order accuracy rate is extremely important to keep customer satisfaction high. It’s also something you can easily control by optimizing your picking and packing process to implementing technology and automation to improve order accuracy. 

4. Orders packed with the right documentation and invoicing

All customer orders that leave a warehouse or a fulfillment center should have the right invoice in the right box. The invoice (or packing slip) should have all of the items ordered with the matching quantities and any other important details your customer requested. The unboxing experience is an opportunity to leave a lasting impression, and packing slips are one way to display your brand. This can be as simple as adding your logo to each packing slip. 

Why your order metrics need to be perfect

Customer satisfaction andbrand loyaltythrive when customer expectations are fulfilled. When a customer fails to receive the correct items they ordered on time and in pristine condition, they are far less likely to purchase again in the future. 

In addition to this loss of revenue, the cost of correcting order errors (reshipping the right items, covering the cost of returns management, or refunding the customer) takes a toll on your bottom line. By fulfilling orders accurately the first time around, you will save valuable time and money, as well as meet customer expectations.

Tracking order metrics won’t help you make improvements if the metrics fail to reflect the reality of your business’ throughput, so you need to calculate your KPIs correctly to get the most accurate results. 

Insight based on accurate order metrics will inform your decision making — so while it’s not glamorous to track metrics like fill rate, cycle time, or on-time delivery percentage, doing so will help you take control over your logistics operations.

Optimize fulfillment with ShipBob’s perfect order metrics

At ShipBob, our mission is not only to assist ecommerce business owners in calculating their perfect order metric, but to help them improve it. Here are some of the things that ShipBob does to help you achieve higher order accuracy.

Monitors perfect order metrics on your dashboard

With ShipBob’s proprietary technology, you will have access to your own dashboard where you can see real-time updates on all customer orders at every stage of the supply chain. 

From the ShipBob dashboard, you can find data on all distribution metrics you’ll need to calculate your perfect order metric, as well as other metrics, to give a comprehensive, at-a-glance view of your supply chain performance at any time

Maintains high order accuracy rates

Here at ShipBob, we understand how important order accuracy is to you and your customers. We strive to eliminate human error and take continuous steps to improve our operations.

Whether it’s assigning pickers optimized routes, opening more fulfillment center locations to cut down on shipping times, or improving our warehouse picking and packing processes, ShipBob is constantly looking for ways to improve and achieve higher levels of order accuracy.

In addition to focusing solely on order accuracy rate, we also closely measure ‘support cases per order,’ which is a bigger indicator on how well we’re performing as your logistics partner.

This metric also provides you with information you can use to prepare your customer service team for future growth based on the projected case volume per number of orders.

“We were only gone from ShipBob for a month and a half, and it was a terrible experience. With the new fulfillment network, we experienced a huge surge in fulfillment errors and countless complaints about orders being inaccurately fulfilled. Errors will inevitably happen when you fulfill orders at large volumes, but not like this.”

Gerard Ecker, Founder & CEO of Ocean & Co.

Improves the entire inventory management process

To maintain perfect order metrics, you need to be sure that all of your ecommerce inventory is being processed, stored, picked, and recorded properly. 

At ShipBob, we offer built-in inventory management software and other tools to help keep track of the inventory and order manage process across our fulfillment network.  This way, you can stay on top of your inventory accuracy while also reducing the likelihood of stockouts, backorders, delivery exceptions, and late deliveries that hurt your perfect order metric.

“One of our main priorities was finding a reliable partner that could store all of our inventory and provide tools that would help us manage it. We rely heavily on ShipBob for inventory tracking and forecasting and that’s been a key part of our partnership. Our area of expertise is not logistics or inventory management, so we lean on ShipBob a lot for that. We’ve learned so much about this industry since working with ShipBob, as they are true supply chain experts, which has been good for everyone on our team. When thinking about fulfillment, there’s such a focus on the packing and shipping aspect that the inventory management piece can often go unnoticed. But ShipBob’s ability to help us track and reconcile inventory is really great.”

Callie Tivnan, E-commerce Manager, and Christina Williams, Customer Success Manager at Barefaced 

Optimizing the supply chain regularly

With ShipBob as your 3PL, you will benefit from our growing and international fulfillment center network, best-in-class technology, and expertise that allows us to optimize the ecommerce fulfillment process.

We are constantly revising our operating procedures and implementing best practices, technology, and automation to stay at the cutting edge of order fulfillment, warehousing and inventory management.

As your partner, ShipBob strives to make continuous improvements to our operations to help you grow and become more successful.

Order Metrics FAQs

Figuring out which order metrics to track and how to track them can be tricky at first for new ecommerce business owners. Here are some of the most common questions and answers related to order metrics and how ShipBob can help you track important supply chain metrics.

What metrics does ShipBob track?

ShipBob’s advanced analytics and reporting tool tracks all the fulfillment and logistics metrics you’ll need to make data-driven decisions for your business. Some of these metrics include the number of orders placed, fulfilled, shipped, and processed; the number of products that are out of stock and the quantity of orders affected by that stockout; the fulfillment cost per unit and per order; the percentage of orders fulfilled on time; the revenue per order; and shipping insights and transit time.

What is perfect order metric?

The perfect order metric (or perfect order rate) is a composite metric representing the number of orders that are delivered on time, damage-free, error-free, and shipped with the correct invoicing and/or paperwork. Perfect order metrics are often used in benchmarking and assessing overall supply chain performance.

How do you track perfect metrics?

To track perfect order metrics, you’ll need to track how many of your orders are delivered that are completely damage-free, are packed accurately, arrive on time, and include the proper documentation. Once you calculate these key performance indicators (KPIs), you can determine how many of your orders meet all four criteria and divide that subset by the total number of orders to arrive at your perfect order metric.