How to Calculate your service level

Description

It is a performance indicator (KPI) used to determine and quantify the overall efficiency of a company’s supply chain. Its data are very useful for the supply chain manager. Indeed, this indicator gives you the possibility to measure and calculate your client’s satisfaction rate in relation to its initial expectation. Its optimization is important in order to improve your logistics performance.

In other words, “it is a percentage of products delivered on time in the required references and quantities, compared to the request expressed by the customer”. The service level is one of the methods to anticipate a shortage of stock during the next replenishment cycle and thus limit the default of deliveries and sales.

 

 

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Additional information

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