3 Replies Latest reply on Oct 14, 2011 3:53 AM by Rajenderagnihotri

    Measuring Service Level

    mgibbs7 Newbie

      We are trying to measure service level of our orders but have run into a snag.  Some of our customers have a shipping window in which to come in and pick up their order.  Some of these windows are up to 7 days long.  When we go back and measure our performance against the requested ship date, which is the first day of the window, many of these orders show up as being late, when in fact they were on the dock and ready to go on time.


      Obviously, we can add the number of days in each customers ship window to their requested date, and then those orders would not show up as late, but my concern is what if we are late by a day or 2.  Adding the days in the window may cover up orders that we were actualy late on.


      One way our metric shows a lower than actual number, the other way may show a higher than actual number.


      I don't know if there is a correct answer to this question but I am wondering what other companies do.  Do others have this issue and what did you do to solve it?


      Thank You


        • Re: Measuring Service Level
          carp614 Newbie


          They way I have seen this issue managed created questions about efficiency, but worked well. It actually required a procedural or process change. A rule was applied to shipments that required them to be ready to ship within 24 hours of opening of the pick up window OR shipped by requested ship date. It was a little more expensive, but since the majority of orders required no special handling it was deemed worth the cost.


          Hope this helps!

          • Re: Measuring Service Level
            rengalla Newbie

            Would it be possible to create a location such as "Ready to Ship", then measure your performance against that location.  Depending on your systems, you may have to pull data from your inventory movements into the "Ready to Ship" location as well as shipping history to get your actual service levels, but I would not expect that to be a difficult problem to solve.  Good luck!

            • Re: Measuring Service Level
              Rajenderagnihotri Novice

              Hi Michael,


              As per my understanding goes service level for you can be looked at from 2 ways :


              1.Fill Rate-Inventory available against the order


              2.Shipment Efficiency-Order dispatched to customer


              Also,your Inventory Management system,I suppose must be having location  (docking  / shipping) with inventory againt each order.


              You IT team can create 2 reports:1.Customer Orders VS Shipped Order, 2. Customer Order VS (Order lying at the docking area + Shipped Order)


              Best Regards,


              Rajender Agnihotri