RE: Order Fill Rate -- SYSTEM21

Great question.  We've always measure fill rate on a line item basis.
Meaning if you had an order with 10 lines for a quantity of 10 each (100
quantity total) and you shipped 99 (1 line was shorted by qty 1) that would
be a fill rate of 90% (9/10 lines shipped complete).  We have a manufacturer
that wants us to measure fill rate on an order basis (previous example would
be 0% or 0/1 orders shipped complete).  We used to have to fill rates,
immediate and quick, with immediate meaning the order line shipped complete
from the normal (closest) warehouse and quick meaning the order shipped on
time, but from a more distant warehouse.

We currently do our analysis after the fact by marking order lines with a
"filled or not" flag by analyzing OEP55A (order line audit file) to see if
the item was ever backordered and if it shipped by the requested ship date
(that is how we use DTDR55).  We do this analysis nightly for order lines
marked complete.  The fill rate report then computes fill rates by looking
at the "filled or not" field for each order line.  Waiting until an order
line is complete has been a source of a lot of discussion in our company and
using that rule probably makes the fill rate artificially high.  I think
we'll change to say the line was not filled as soon as we've passed the
requested ship date without filling the order.  Another potential issue is,
what if the requested ship date is changed?  How do you know if this is a
reluctant "try again" from the customer after an initial backorder or truly
wanting to delay receipt of product.

We carry all of our product on consignment and we're starting to contract
for performance related to correct stocking levels where we measure fill
rate and #weeks of stock on hand.  Any business rules or algorithms from
other users would be appreciated.

-----Original Message-----
From: William Kanze [mailto:wkanze@bakerlinen.com]
Sent: Wednesday, June 20, 2001 1:40 PM
To: jbausers-l@midrange.com
Subject: Order Fill Rate


This question is for Wholesale Distribution Companies.

What are your goals or policies concerning customer order fill rates?  In
other words, what percentage of orders do you aim to ship complete in order
to meet/exceed customer expectations?  By "Ship Complete", do you interpret
that as the whole order shipping from one or multiple shipping points?

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