I.B.

Singh
Performance measures of customer service as
follows :
1. Order Cycle Time and its variability
Most important measurement for customer.
Represented by mean and standard deviation or
percent of orders meeting target order cycle
time.
2. Order Entry
Minimum , maximum and average time for
order handling
Percent of orders handled within target times.
3. Order documentation accuracy
percent of order documents with errors.
4. Transportation
Percent of deliveries on time.
Percent of orders delivered by customer request
date.
Damage and loss claims as a percent of freight
costs.
5. Inventory and product availability
Stock out percentage
Percentage of orders filled complete
Order fill rate and weighted average fill rate.
Average percentage of items on back order
Item fill rate.



6. Product damage
Number of returns to total orders
Value of returns to total sales
7. Production/Warehousing processing time
Minimum , maximum and average time to
process orders.
In addition to above , other measures can be
used depending on the logistics system
operated by the company.

Major elements to be considered for Gap analysis:
1. Present customer service level
2. Corporate vision about customer service
3. Service expectation of customers
4. Customer service need for product /
competitive advantage
5. Prevailing customer service level in industry.
Difference between 1&2 , 1&3,1&4 and 1& 5
are found to be major Gaps and difference
between 2 & 3 and 4 & 5 are considered as
minor Gaps.