How to measure customer service level ? Measure your own

All the versions of this article: [English] [français]

Indicator objective, measures & definitions , Calculation rules, What are the clues to enhance the service rate , Display and discuss the rate, Success stories with figures, Want to know if the rate is good enough and how to enhance it ?

1. Indicator Objectives

- To satisfy customer demand in terms of leadtime
- To make savings in transport costs through better forecasting
- To forecast the load

2. Measure and definitions

Customer satisfaction is measured by a "rate of service".

There are 2 LEVELS OF SERVICE (On-Time-Delivery=OTD):

  1. / Rate of orders delivered on time to customer’s request (OTD-R On Time Delivery to Request)
  2. / Rate of orders delivered on time to a promised date (OTD-C : On Time Delivery to Commit).

In general, it is the 2nd example that is used: OTD-C, or just "OTD".

3. Calculation rules

  • Weekly tracking indicator
  • The confirmation date corresponds to the exact date of departure from the factory.
  • 1 order = 1 line in the planning
  • The promised ship date must allow for delivery on the date promised to the client
  • Calculation:
    • Performance index = ship date [1]-company commitment
    • OTD = (number of orders where the performance index <= 0) / (Total number of orders delivered in the week).

Now measure your own on time delivery rate and compare it against the scale above. Call us if you want to do better!

4. What are the clues to enhance the service rate ?

- The real delivery date given to the customer depending of tnhe actual work load : a visualisation information tool of the forthcoming load, (not obviously expensive nor complicated),
- Throughput time reduction in workshops and stocks,
- In-line operations installation,
- Order start-up time decrease,
- Purchase planification,
- Takt time increase by process parameters management,

5. Display and discuss the rate

Afin de vous faire gagner du temps, car un indicateur est d’expérience long à mettre en place du 1er coup, nous avons conçu des fonds d’indicateurs effaçables à sec à prix très attractifs , dont le Taux de service afin de suivre par jour le taux de chaque équipe, par semaine, par semestre : see those models

6. Success stories with figures.

Other manners to make the good work organization diagnosis that will enable the rapid enhancement of the situation :

7. Want to know if the rate is good enough and how to enhance it ?

You have calculated your service rate ?
Contact us to enhance it !


[1or availabilty of the products