Order-fill rate performance is a key metric for assessing supply chain reliability. It measures the ability of the supply chain to meet customer orders in full and on time, which directly reflects the reliability and effectiveness of the supply chain processes. A high order-fill rate indicates that the supply chain can consistently fulfill customer orders as expected, which is crucial for gaining a competitive advantage. Metrics like cash-to-cash cycle time, supply chain response time, and value-added productivity per employee are important but do not directly capture the reliability aspect as clearly as the order-fill rate.
References:
* Harrison, A., & Van Hoek, R. (2011). Logistics Management and Strategy: Competing through the Supply Chain. Pearson.
* Mentzer, J. T. (2004). Supply Chain Management. Sage Publications.