The order accuracy rate (OCR) is an Order Fulfilment Metric that measures how many orders are dispatched without any errors. Mis-picking an item, ordering the wrong item, receiving a malfunctioning or broken item, and so on are examples of these errors. The OCR is a crucial measure since it has a significant influence on the customer experience. Its formula is shown below:

OCR= (number of orders accurately fulfilled/total fulfilled orders) x 100

Let us look at an example of how to compute the order accuracy rate. Suppose, you shipped 100 orders from a warehouse, four of which had processing issues. As a result, the accuracy rate of your order is 96% {(96 / 100) X 100}.

 

Why Should You Keep Track of Order Accuracy?

Most online businesses measure order accuracy rates for various reasons, including:

  1. Analyze the efficiency of the fulfilment process
  2. Identify procedures that are prone to errors
  3. Improve order accuracy by taking remedial action
  4. Improve client satisfaction and retention

 

Advantages of Order Accuracy Rate

Although achieving a 100% on order fulfilment metric is unrealistic, you should attempt to keep your accuracy rate as nearly 100% as possible. Order accuracy ranges from 96% to 98% for the most successful eCommerce companies or brands. If your online store falls into that category, increasing your order accuracy rate can help you gain a competitive advantage.

 

Suppose the order accuracy is less than 95%. In that case, you must take immediate action to improve it if you do not want to deter clients from buying from you again.

 

Below are some of the major advantages of having an increased order fulfilment rate:

1. Returns are Lower, But Profits are Higher

You may reduce the number of returns by correctly delivering more orders. According to a report, the average return cost is 30% of the order cost. It implies you may lose money if you process incorrect order returns. Additionally, you must go above this to please dissatisfied clients, providing complementary or reduced goods. As a result, enhancing the order fulfilment rate can help you reduce returns and processing expenses, resulting in higher profits.

 

2. Errors are Reduced and Efficiency is Increased

You may avoid costly errors by increasing order accuracy. Picking, packaging, and shipping errors can result in products being delivered incorrectly. It leads to inefficiencies in warehouse operations, as well as increased costs. You may reduce errors and reduce inefficiencies by increasing order accuracy.

 

3. Improves Client Retention and Establishes a Trustworthy Brand Image

Error tolerance is low or non-existent among today’s clients. You may gain client confidence by routinely delivering orders properly. Customer retention and NPS improve as a result of this.

 

 

 

 

How to Increase Order Fulfilment Metric?

There are several tactics for increasing order accuracy, but they all boil down to one of two options:

  1. Reducing the frequency of errors using sophisticated processes
  2. Using next-generation technologies to include error-free automation

 

Methods for Increasing Order Accuracy

1. Set Targets for Order Accuracy

When you have a plan, you can achieve success. To reach a certain goal, you must first determine your current order fulfilment rate and set a reasonable target and time range. Make sure everyone on the team understands the aim and how they can increase the order fulfilment rate. As a result, you may direct it by taking concrete measures.

 

2. Make the Warehouse Arrangement More Efficient

Segmenting products using the ABC analysis, which groups items based on previous purchase data and patterns, is one of the easiest methods to organize your inventory.

  • Group A consists of the most commonly purchased items.
  • Group B consists of products that are not as commonly purchased.
  • Group C consists of items that are only sometimes purchased.

It helps the picker, whether human or computer, to retrieve objects faster and more correctly.

 

3. Make the Selection and Packing Process more Efficient

By ensuring that you are using the correct barcodes and that your picking lists are descriptive enough, you may prevent frequent errors like choosing the incorrect size or colour. You may also employ warehouse slotting, which is the practice of placing merchandise in the most convenient location for the picker. It can increase picking functionality and accuracy by removing any potential for the picker to become confused.

 

4. Smart Automation Should be Used

Errors are more likely to occur since people are directly engaged in the choosing process. Furthermore, order pickers spend most of their time going from one location to another inside the warehouse, resulting in several unnecessary overheads. Fortunately, sophisticated technology such as intelligent robots, conveyor belts, barcode scanners, and more can already automate typical warehouse activities. It might assist you in saving time and effort when it comes to choosing orders.

 

5. Employees Should be Rewarded for Improving Rates

Employee performance may be increased by 44% using incentive schemes. Employees’ interest in their jobs is piqued due to these initiatives, and errors are reduced. Making an internal order fulfilment goal and paying employees when they accomplish it is a good place to start incentivizing staff.

 

6. Conduct Quality Assurance Inspections

You may conduct a quality check during the order processing process to guarantee that the things supplied to customers are correct and in good shape.

 

7. Make Use of the Proper Packing Materials

You do not want your products to be damaged while in transportation. To do so, you must verify that proper materials are utilized in the product’s packaging. For example, suppose you are shipping glassware. In that case, you will need safe dunnage, or the proper packing of bubble wrap, to guarantee that your buyer does not receive a broken item.

 

 

In conclusion

Order Fulfilment Metric is among the most important criteria of eCommerce success, which improves customer satisfaction and establishes a strong brand image. You may assess how prone to mistakes your order fulfilment process is by calculating and applying the order accuracy rate. You may implement these tactics into your warehouse operations to increase order accuracy or outsource the order fulfilment process to a seasoned professional. The latter will help you improve order accuracy and streamline your fulfilment procedures and increase overall operational efficiency.

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