Measures how efficiently suppliers meet order requirements, including quantity, quality, and delivery schedules.
What it Measures ?
Measures how reliably suppliers fulfill orders.
Relevant StakeHolders
Vendor Management, Logistics
Why it Matters ?
Ensures suppliers meet fulfillment agreements.
In-depth Use Case / Real-world Example
A manufacturing company producing industrial engines tracks Supplier Fulfillment Efficiency by monitoring how well suppliers meet the agreed-upon order specifications. If a supplier delivers 1000 parts, but only 900 are usable and 50 are late, this metric will reflect inefficiency. High fulfillment efficiency ensures a smoother production process with fewer disruptions due to supplier issues.
Sample Formula
Orders Fulfilled on Time / Total Orders