BMO 2201 Chapter Notes - Chapter 3: Customer Success, G1 Phase
24 Dec 2018
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Document Summary
Service reliability is a firm"s ability to perform all order-related activities and provide critical info: service reliability involves a combination of logistics attributes beyond simply availability and operational performance. Damage free measures how many shipments arrive without damaged products. Error-free invoices measures what percentage of invoices contain no errors. Shipment matches order measures how many shipments contain the exact amount of product ordered. Shipped to correct location measures how many shipments are made to the customer"s selected location: plus a capability and willingness to provide customers with accurate information regarding operations and order status. Example of zero-defect performance measurement: consider an order cycle that achieves the following performance levels for shipments. 97% delivered with correct documentation: probability that any order will be delivered with no defects is only 88. 5% P (zero defects) = . 97 x . 97 x . 97 x .
