In discussing order management, we presented a breakdown of the order cycle into

Question

In discussing order management, we presented a breakdown of the order cycle into four distinct phases, each including different steps in the process. One key aspect of logistics is to provide objective measurements/metrics of business processes so that these processes can be quantitatively analyzed.

In the space below: (1) list each of the four stages of an order cycle and (2) for each stage, propose a specific metric or aspect that can be measured regarding that stage of the order cycle. The metric/measurement can be proposed verbally (rather than with a formula) but must apply to that stage and be specific enough so that it is clear what data would need to be tracked/collected and what type of calculation would need to be performed (% calculation, average, etc)

Explanation / Answer

Q1) The four stages of an order cycle include -

1. Order Transmittal - Stage between customer placing the order and seller receiving the order

2. Order Processing - Order entry and booking for fulfillment.

3. Order Picking and packing - Picking of the order quantity and packing

4. Order Shipping/delivery - Shipping and delivery of the order to customers.

Q2) Below are the metrics for each stage of order management -

1. Order Transmittal - Customer Order information error rate

2. Order Processing - Customer order booking accuracy rate

3. Order picking and packing - Fill Rate, Orders fulfilled without damage/issue

4. Order delivery - Customer Service level, Customer shipment lead time

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