This white paper explains how each aspect of perfect order performance can be improved through enhancements to data collection processes and technologies. It does not focus on basic bar code-based shipping, receiving and inventory management applications, nor on warehouse management systems (WMS) or wireless-directed picking and putaway. Such systems are foundational to efficient, highly accurate warehouse and distribution operations. This white paper focuses on other technologies which will provide better execution and productivity to create a greater competitive advantage.

Introduction
Even if a company’s fill rates, on-time delivery, damage-free shipment and accurate invoicing success rates are all very good -- say 95 percent -- its chances of providing a perfect order are not. Problems are prevalent even at these lofty levels of performance. A 95 percent success rate for each of the four perfect order components give companies only about a four out of five chance to complete a perfect order, as the following perfect order metric calculation developed by WERC shows:

• 95% fill rate (0.95) x 95% on-time deliveries x 95% damage-free shipments x 95% accurate invoices = 81.4% (which can be expressed as 0.954 = 81.4). • Companies that perform at 90 percent success levels for each component have less than a two out of three chance to make a perfect delivery (0.94 = 65.6).

To underscore this point, the following table highlights the findings of WERC’s research into perfect order metrics at companies. It shows that 95 percent performance levels put companies at a competitive disadvantage, and that across-the-board success rates of at least 98 percent are required to gain an advantage.