Survey Results on Fulfilling Customer Sales Orders

No more important company goal should exist than to satisfy the customer with the product and/or service offered by the company. Many company processes are used between receiving a customer sales order and delivering the order’s requested product and/or service to the customer.   Below are links to four surveys that identify several such needed processes.  The surveys present data that are measurements that can be used to show how well the processes are carried out.

In addition to the links to the PDF reports on the surveys, information is provided below on some of the key content provided in the survey reports.  The data in the reports should be useful to the small company trying to improve its sales order fulfillment processes.

The Aberdeen Group published a report entitled “The Warehouse Productivity Benchmark Report – A Guide to Improved Warehouse and Distribution Center Performance” in 2006.  The report indicates that most companies surveyed have not been successful in reducing customer order cycle times. Suggestions are made on why this is the case.   The suggestions lead to recommendations.  Useful data in the report includes: actions taken or planned to improve warehouse operations; identification of technologies being used or planned for improved performance; barriers to better warehouse performance; and best-in-class performances compared to average performances.  Click here to access this report (PDF file).

Karl Manrodt and Kate Vitasek, of Metrics Surveys, analyze a 2006 survey by Georgia Southern University on how well distribution centers do in delivering products to customers.  What may be the most useful data for the small company, presented by Manrodt and Vitasek, are median and best-in-class performance measurements for metrics related to distribution.  Metrics include: order cycle time; on-time shipments; dock-to-stock cycle time; % lost sales; % back orders; cases shipped per person per hour; distribution costs as a % of sales; inventory shrinkage as a % of total inventory; and inventory days of supply on hand.  Click here to gain access to these useful benchmarking metrics (PDF file).

Karl Manrodt and Kate Vitasek use the results of another survey, conducted by Vendor Compliance Federation, to prepare a 2008 report focusing on how average and best-in-class do with respect to the four metrics often considered the most important in fulfilling sales orders successfully.  These four metrics are: on time delivery; complete orders; damage free; and accurate documentation.   The report’s data include that in 2007 on average only 51.1% of surveyed companies had on time delivery; 59.5% complete delivery; 100% damage free; and 88.8% accurate documentation.  Best-in-class vendors had these results: on time delivery – 76.7%; complete – 87.5%; damage free – 100%; and accurate documentation – 99.4%.  Click here to gain access to this report (PDF file).

Rob Martinez reported the results of a 2010 Shipware Systems Corporation survey on distribution center metrics.  The survey compares what data best-in-class companies track to what average campiness track.   Results show that increased tracking of distribution-related metrics often correlates with companies found as best-in-class.  The survey also shows that companies that benchmark to other company performances do better in several distribution-related metrics.  The report on the survey can be accessed by clicking here (PDF file).

The data from surveyed companies in the four reports identified and linked to above should be useful to small companies to set goals for one of the most important tasks a company has – keeping the customer happy.