The Perfect Order Rate is a metric used in supply chain management to measure the percentage of orders that are fulfilled without any errors. A perfect order is one that is delivered on time, complete, and in good condition. The formula for calculating POR is as follows:

POR = (Number of perfect orders / Total number of orders) x 100%

For example,

let’s say that a company receives 500 orders in a month and 475 of them are fulfilled perfectly, while 25 of them have some kind of error, such as being late, incomplete, or damaged. The perfect order rate for that month would be:

Formula

POR = (475 / 500) x 100% = 95%

This means that 95% of the orders were fulfilled without any errors, while 5% had some kind of issue. A higher POR indicates a better level of service and customer satisfaction, as it means that more orders are being fulfilled perfectly. A lower POR, on the other hand, indicates that there are more errors in the order fulfillment process, which can lead to dissatisfied customers and lost business.