I need the community help with my research.
Successful companies track industry standard key performance indexes (KPIs) for their end-to-end fulfillment processes. Perfect order percentage, order cycle time, fill rate, etc. are some examples of KPIs that are measure and tracked.With these metrics and KPIs they are able to perform optimally to meet customer delivery expectations (get to the root causes of delivery delays rather than fixing them with customer support), manage inventory better, optimize labor and more.
I'm doing research to understand if Shopify merchants measure and track fulfillment performance metrics (formally or informally or even anecdotally). Do any of you try to get a sense of the end-to-end performance of your fulfillment process? If so, how do you go about it today? Why might these metrics be important to you?
How do you measure and track the end-to-end fulfillment performance in terms of time taken? In other words, I'd like to know how long each stage of the fulfillment cycle takes.
Here's to give you an idea of the basis of such metrics:
Let's say we have the following timestamps for each stage of the end-to-end process for every order:
Order received @t1
Order picked for processing @ t2
Pick-pack-ship completed @ t3
Package scanned by carrier @ t4
Package starts transit at @ t5
Package reaches destination city @ t6
Package out for delivery @ t7
Package delivered at customer address @ t8
If we know this, we will be able to get the duration for each stage of the process:
t2 - t1 = time the order is waiting in queue to be processed
t3 - t2 = time taken for pick-pack-ship
t4 - t3 = time package is waited to be scanned by carrier
t5 - t4 = time package waited before transit started
t6 - t5 = transit time
t7 - t6 = time package waited at destination city before going out for delivery
t8 - t7 = time taken for final delivery to customer from destination facility
With the above information, we can calculate the performance (time taken) for each stage to understand how well the end-to-end process is working. This will be very useful to accurately estimate delivery dates, identify potential improvements to the fulfillment process, proactively catch processing delays, track ship-by and delivery promise dates and so on. In addition we can calculate industry standard KPIs such as perfect order percentage, order cycle time, etc.
Your thoughts will help drive my research.
Thanks
simplyFYI
