Elements of perfect order rate research in logistics chains

Abstract

Perfect order rate (POR) is one of the superior measures of the logistics processes quality. POR is at the top of the hierarchy of key performance indicators (KPI) in supply chain and is considered as difficult to define and measure. Perfect order rate is composed of sub-measures touching technical, economic, quality and safety aspects of logistics processes. POR directly defines what the organization considers to be the perfect implementation of its tasks (and thus sets goals for the organization) and, secondly, measures the degree of achievement of these goals. The paper defines the concept of perfect order rate by including new elements to classic definition, so far rarely considered in the literature: possibility of order implementation according to standard procedures in organization and safety aspects. The concept of logistics chain and the impact of its functioning on the POR value have been defined. The picking and replenishment processes were discussed in detail as the basic elements affecting the quality of logistics processes and the value of POR. Next, the issues of logistic processes safety in warehouse facilities were discussed. The large intensity of warehouse operations along with their mechanization and automation very often leads to many hazards in warehouses and logistics chain. These hazard are usually related with warehouse workers safety. However, they can also lead to various delays or downtime in the material flows, as well as damage or reducing the quality of materials. So it was assumed that safety aspects can influencing the value of POR in the logistics chain. Due to conducted research and compiled reports indicate that many accidents in the warehouse are associated with the forklifts use as equipment for material handling. Therefore, in paper main attention was paid to hazards related with forklifts, warehouse safety speed, etc.