The perfect order rate is the share of orders that arrived exactly right: on time, in full, undamaged, and with the right invoice and paperwork. Perfect order rate = perfect orders ÷ total orders. An order that's a day late, or one case short, or has the wrong purchase order number on its invoice, isn't perfect, however good the rest of it was. A tofu maker that delivers 20 orders in October with 18 on time, 17 in full, 19 undamaged and 19 with the right paperwork has a perfect order rate of 70%: each measure looks fine on its own, and together they let down six customers. Below is the formula, both ways of working it out, a month of deliveries, and a free calculator.
The short version
- Perfect order rate = orders that were on time, in full, undamaged and correctly documented ÷ all orders.
- Count it order by order; that's the real number.
- Multiplying the four rates is a quick estimate, close when the four problems happen independently.
- It's never higher than any of the four measures on its own.
- The orders that aren't perfect, and why, say what to fix first.
- TaroStack shows whether an order can be filled as you take it, and records what each customer got. More below.
The formula
Perfect order rate = perfect orders ÷ total orders × 100
An order is perfect only if all four are true:
| Measure | The order was | Checked against |
|---|---|---|
| On time | Delivered on or before the date promised | The due date |
| In full | Every line shipped in the quantity ordered | The order |
| Undamaged | Nothing broken, leaking or spoiled on arrival | What the customer reports |
| Documents right | Invoice, packing slip and labels correct | The customer's purchase order |
Some buyers use the multiplied form instead: on-time rate × in-full rate × undamaged rate × documents rate. It's an estimate that holds only when the four problems happen independently of each other; counting the orders is always the true rate. What a buyer's purchase order asks for, and so what "documents right" means, is in what should a purchase order include.
An example: a tofu maker's October
Skunk River Tofu Co., a made-up tofu maker in Ames, Iowa, I use in these examples, delivers 20 orders in October to two restaurants, a co-op, a grocery and an Asian market. Six weren't perfect:
| Order | Customer | Problem |
|---|---|---|
| SO-412 | Lincoln Way Grocery | A day late, and 40 blocks of 48 |
| SO-415 | Campustown Noodle Bar | A day late |
| SO-418 | Prairie Moon Cafe | 18 packs of smoked tofu of 24 |
| SO-421 | Ioway Creek Co-op | 20 quarts of soy milk of 24 |
| SO-424 | Ingersoll Asian Market | Two packs split in the cooler |
| SO-427 | Lincoln Way Grocery | Invoice without the store's PO number |
| Measure | Orders | Rate |
|---|---|---|
| On time | 18 of 20 | 90.0% |
| In full | 17 of 20 | 85.0% |
| Undamaged | 19 of 20 | 95.0% |
| Documents right | 19 of 20 | 95.0% |
| Perfect order rate, counted | 14 of 20 | 70.0% |
| The four multiplied | 0.90 × 0.85 × 0.95 × 0.95 | 69.0% |
The counted rate is a little higher than the multiplied one because SO-412 was both late and short, one bad order instead of two. The grocery got two imperfect orders out of four, which is the customer to call first. Three of the six problems are short orders, two of them on the products made least often, the smoked tofu and the soy milk, so the fix is in how those batches are planned, not in the delivery van. How suppliers' late deliveries are measured from the other side is in supplier scorecard.
What a good perfect order rate is
As high as you can make it, and higher than your customer's other suppliers. Because it multiplies four chances to go wrong, a rate that sounds modest is hard to reach: four measures at 97.5% each give about 90% perfect. Watch the trend and the reasons more than the number. How grocery buyers judge a new supplier is in selling to grocery stores requirements.
Get the calculator
Download the perfect order rate calculator. One line for each order: type the due date and the delivery date, what was ordered and shipped, whether anything arrived damaged, and whether the paperwork was right; on time, in full and perfect fill in, and the month's four rates, the perfect order rate counted, and the four multiplied are at the side. It's an ordinary Excel file with no macros, and it works in Google Sheets, LibreOffice and Numbers.
Where this stops working
The calculator is filled in after the month, from delivery notes, emails about split packs, and an invoice someone sent back. By then the grocery has had two bad orders. The short ones could have been seen coming when the orders were taken.
How TaroStack does it
TaroStack shows whether an order can be filled as you take it, and records what each customer got.
Short before it ships. A sales order shows whether there's enough of each item on hand while you're typing it, so the smoked tofu that isn't there is known before the order is promised, and "what could I make right now" says whether a batch can be made in time.
What each customer got. Each order is picked from one picking list, shipped with a delivery note, and the lots each customer got are recorded as it ships, so a complaint about split packs points to a lot.
When it was needed, and when it shipped. Each sales order carries the date the customer needs it and the date it shipped, so on time is on the record, order by order. How a wholesale invoice is laid out, purchase order number included, is in wholesale invoice template.
| The job | Spreadsheet | In TaroStack |
|---|---|---|
| Short lines | Found when packing | Shown as you take the order |
| Can we make the smoked tofu in time? | Check the ingredients | What could I make right now |
| Which lot the split packs came from | Search the delivery notes | Lots recorded as it ships |
| Was it on time? | Compare the emails | Needed by, and shipped on, each order |
Sales orders, picking lists, lots and recipes are on every plan, from $49 a month. The first 30 days are free, with no credit card. If you'd like a hand setting up, ask, and we'll do it with you.