Parameters for Service Level Evaluation
This supporting function is used to define the parameters that regulate updating the data used to measure service levels in the sales statistics. This includes defining the accepted deviation from the confirmed delivery date and confirmed quantity.
Service levels are evaluated by comparing the number of approved deliveries to the total number of deliveries. Each delivery must be classified as either approved or rejected. This is done by comparing:
- Delivered quantity to confirmed quantity
- Actual delivery date to confirmed delivery date
Before you start
Customer order types must be specified to use this supporting function.
Follow these steps
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Enter Accepted Delivery Deviation in Quantity
The accepted deviation in quantity is entered in ‘CO Type. Open’ (OIS010/K). This is the percentage deviation between agreed and delivered quantity allowed for a delivery line to be accepted as fully delivered with the agreed quantity.
The delivery is checked according to a specified method. The table below describes the methods available.
Method Description 0 Delivered quantity must be equal to or greater than ordered quantity. 1 Partial delivery checked against acceptable percentage deviation in the order type. Overshipped quantities are always approved. 2 Partial and overshipped quantities checked against acceptable percentage deviation in the order type. 3 Partial delivery checked against acceptable percentage deviation in the order type and/or quantity specified in ‘Item. Connect Order Line Compl Limit’ (MMS425). Overshipped quantities are always approved. If no quantity or percentage is specified, method 1 is used. 4 Partial and overshipped quantities checked against acceptable percentage deviation in the order type and/or quantity specified in ‘Item. Connect Order Line Compl Limit’ (MMS425). If no quantity or percentage is specified, method 2 is used. Each invoiced delivery line is checked against the appropriate order type before it updates the detailed sales statistics. Approved lines are flagged (1) in one of these accumulator fields:
- Number of deliveries with correct time and quantity
- Number of deliveries with correct time but incorrect quantity
The accumulator field updated depends on whether the correct quantity was delivered.
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Enter Accepted Delivery Deviation in time
The tolerance for delivery times is entered in ‘CO Type. Open’ (OIS010/K). This is the number of workdays early or late an order line can be delivered to be accepted as delivered on time. For this, the actual delivery date is compared to the confirmed delivery date.
The tolerance limits are entered in fields Tolerance days early delivery and Tolerance days late delivery. Every invoiced delivery line is checked against the appropriate order type before it updates the detailed sales statistics. Approved lines are flagged (1) in one of these accumulator fields:
- Number of deliveries with correct time and quantity
- Number of deliveries with correct time but incorrect quantity
The accumulator field updated depends on whether the correct quantity was delivered.
Description
The tables below describe how service levels can be evaluated. First, the information must be accumulated statistically and then calculated.
Accumulated data for measuring service levels against customers:
| Cust. | No. deliveries | Corr. Time and Qty. | Corr. Time Incorr. Qty. | Corr. Qty Incorr. Time |
|---|---|---|---|---|
| A | 1,000 | 810 | 40 | 90 |
| B | 1,000 | 900 | 10 | 60 |
| C | 1,000 | 600 | 350 |
The calculated service level is then:
| Cust. | Total Service Level | Corr. Time | Corr. Qty |
|---|---|---|---|
| 81% | 85% | 90% | |
| 90% | 91% | 96% | |
| 60% | 60% | 95% |