Tag Archives: order

Time elapsed since repeat business with category A customers (top 20% or top 10% customers)

Definition:
The time between two deals with Category A customers, which must be predefined. Normally this should be as low as possible, on the other hand: one large order can be more interesting than a lot of small orders…

Calculation:
Time of last order - time of the order before.

This KPI is measured as: Time (e.g. Years, Minutes)

Interpretation of results: Depends On The Goals

Strategic objective:
Increase profitability

Orders canceled

Definition:
Number of orders that have been canceled. These cancellations can be categorized by predifined reasons

Calculation:
Sum of orders canceled

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Lower Is Better

Strategic objective:
Long-term

Order frequency

Definition:
Number of orders coming in per period (day/week/year).

Calculation:
Number of orders / period.

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Higher Is Better

Strategic objective:
Efficient operations

Order entry error rate

Definition:
Rate of orders that has been entered incorrect into the system. The higher the number of incorrect entries, the less streamlined the further process of delivery will pass off. Mind that higher number of errors can be an indicator of a higher pressure of work.

Calculation:
(Number of incorrect entered orders / total entered orders) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Lower Is Better

Strategic objective:
Efficient operations