How Perfect Order Rate Is Determined

What is a Perfect Order?

A “perfect order” is a purchase order (PO) that contains no exceptions on its corresponding return documents: Purchase Order Acknowledgment (POA), Advance Ship Notice (ASN), and Invoice (INV). A perfect order is one that flows across the GHX Exchange (integrated) in touchless and completely automated fashion from purchase through payment.

Note: GHX defines “perfect order” in accordance with the Strategic Marketplace Initiative (SMI) definition.

Perfect Order Rate: A Key Performance Indicator (KPI)

In Supply Chain Analytics, on the Perfect Order Dashboard, the Perfect Order Rate (POR) is one of several key performance indicators (KPIs) on which a perfect order is based.

The Perfect Order Rate reflects the percent of PO lines sent across the GHX Exchange (integrated) that are “perfect.” For a PO line to be perfect, it must fulfill ALL the criteria below:

The PO line has a corresponding purchase order acknowledgment (POA) line
The PO line has a corresponding invoice line
The PO line does not have an item number exception
The PO line does not have a unit of measure exception
The PO line does not have a unit price exception
The PO line was filled on the first response
The PO line does not have a rejection exception
The PO line does not have a quantity exception

If a PO line does not fulfill all criteria, it is considered “imperfect.” Both “perfect” and “imperfect” PO lines are reflected in the Perfect Order Rate metric.

The Perfect Order Rate shows at a glance how automated and efficient your organization’s supply chain performance is across the GHX Exchange (integrated).

Additional KPIs by Category

The Perfect Order Dashboard displays the Perfect Order Rate in addition to other KPIs on which a perfect order is based. These category-specific KPIs—Purchase, Price, Fill, Receive, and Pay—highlight supply chain performance in those specific areas.

The Perfect Order Rate is not an average of these category-specific KPIs.

Each of the category-specific KPIs has its own logic and is calculated independently from the Perfect Order Rate calculation.

They are KPIs that complement the Perfect Order Rate to give you a fuller picture of your supply chain performance.

KPI Sub-Categories

Each of the category-specific KPIs has a set of individual sub-category KPIs that roll into it.

Example: POA Lines, Item Number Exception, and Unit of Measure Exception are individual KPIs at the sub-category level that roll into and determine Purchase category metrics.

This table shows the individual KPIs that impact each category:

KPI Category	KPI Sub-Categories
Purchase	Percent of PO lines with POA lines Percent of PO lines with item number exceptions Percent of PO lines with unit of measure exceptions
Price	Percent of PO lines with unit price exceptions
Fill	Percent of PO lines with backorder exceptions Percent of PO lines with rejection exceptions
Receive	Percent of PO lines with ASN lines Percent of PO lines where the ASN is inaccurate Percent of PO lines with quantity exceptions
Pay	Percent of PO lines with invoice lines

Note: Some KPIs at the sub-category level impact the category-level metrics, but do not impact or drive the Perfect Order Rate metric. They are:

PO lines with a backorder exception
PO lines with a corresponding Advance Ship Notice (ASN) line
PO lines with an inaccurate ASN line

Example:

Perfect Order Logic

This table shows the logic used by GHX to calculate each KPI shown on the dashboard.

KPI	Numerator Logic	Denominator Logic
Perfect Order Rate	Count of lines received in a purchase order agreement (POA) or invoice (INV) that have no exceptions for part number, unit of measure (UOM), price, "not on POA" status, quantity, or rejected exceptions in the POA or INV	Total Exchange PO lines
Purchase Rate	Count of lines received in a POA that have no part number or UOM exceptions in the POA	Total Exchange PO lines
POA Lines	Count of lines received in the POA	Total Exchange PO lines
Item Number Exception	Count of lines received in the POA or INV that have part number exceptions in the POA or INV	Total Exchange PO lines
UOM Exception	Count of lines received in the POA or INV that have UOM exceptions in the POA or INV	Total Exchange PO lines
Price Rate	Count of lines received in the POA and INV with no unit price exceptions in the POA or INV	Total Exchange PO lines
Unit Price Exception	Count of lines received in the POA or INV that have unit price exceptions in the POA or INV	Total Exchange PO lines
Fill Rate	Count of lines received in the POA or INV with no rejection exceptions in the POA or INV; should be the first response	Total Exchange PO lines
Backorder Exception	Count of lines received in the POA or INV that have a backorder exception in the POA or INV	Total Exchange PO lines
Rejection Exception	Count of lines received in the POA or INV that have rejection exceptions in the POA or INV	Total Exchange PO lines
Receive Rate	Count of lines received in the ASN with no exceptions in the ASN, and received in the POA or INV with no quantity exceptions in the POA or INV	Total Exchange PO lines
ASN Lines	Count of lines received in the ASN	Total Exchange PO lines
ASN Inaccuracy	Count of lines received in the ASN with exceptions in the ASN	Total Exchange PO lines
Quantity Exception	Count of lines received in the POA or INV with quantity exceptions in the POA or INV	Total Exchange PO lines
Pay Rate	Count of lines received in the POA or INV with no INV exceptions	Total Exchange PO lines
Invoice Lines	Count of lines received in the INV	Total Exchange PO lines

Note: The Perfect Order Rate and category-level metrics will continue to evolve, with opportunities to incorporate more key performance data points in the future.

Key Takeaway

The Perfect Order Rate is a metric based on its own calculation. It is a key KPI that is complemented by other category-specific KPIs (Purchase, Price, Fill, Receive, Pay) and sub-category KPIs. The Perfect Order Dashboard brings these metrics together in one view to help your organization analyze and take actions to improve your supply chain performance.