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Service Rate

The VRO Service Rate is measured based on ordered lines delivered in full.

On a Pick-Up Order a part number can be only once. So one line ordered is equivalent to one part number ordered.
If a part number of a Pick-Up Order is ordered (Ordered quantity > 0), the Service rate is 100% if the quantity is fully delivered by the transportation linked to this Pick-Up Order. If the quantity is partially delivered or delivered in full using not only this transportation but also an other one (express transportation for example), the service rate is 0%. If the quantity delivered is higher than the quantity ordered the Service Rate is 0%.
The VRO service rate for a part number of a Pick-Up Order can have only 2 values: 0% or 100%.

The Service Rate for a Pick-Up Order is the average of the Service Rate of the part numbers ordered on this Pick-Up Order.
The Service Rate of a Supplier for a given period is the average of the Service Rate of the part numbers ordered by Pick-Up Orders during this period.

Example of a Pick-Up Order

Part number Quantity ordered Quantity Delivered Service Rate Comment
A 9 9 100% The quantity ordered has been delivered in full.
B 9 8 0% Missing one piece: 0%.
C 9 10 0% one extra piece has been delivered: 0%. It will be recorded as an incident.
D 0 0 NA 0 piece ordered: Service Rate not applicable.
E 0 1 NA 0 piece ordered: Service Rate not applicable but the over shipment will trigger an incident.


For the Pick-Up Order

Lines ordered Lines delivered in full Service Rate
3 1 1 / 3 = 33%

Supplier KPI Delivery performance but also adherence at the process are 2 aspects to be tracked in order to assess Supplier's performance.

VRO Incidents To keep your VRO efficient, it is important to record the non respect of its key steps.

Improving the Supplier PCR How to improve the reliability of the Supplier Promise.

Promise Compliance Rate (PCR) A very specific KPI, fundation of the VRO process.

VRO Discrepancies Discrepancies management is a time consumming process. So it is important to highlight them during reviews with Suppliers.

VRO Supplier KPI report A simple file to record and present VRO Supplier KPI.

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