The words “report card” means different things to different people. For those that did well in school, handing in your report card to your parents was a proud moment. You studied hard and finally had the A’s to prove it. But for some who spent the year playing class clown, a report card was like a long list of classroom indiscretions. So, as we look back at 2022, what does an OLG Performance Report look like? We don’t mean in a financial sense, but in the metrics that really count. Things like average order fulfilment time, pick-pack errors in our warehouse and the most important one of all – our customer satisfaction.
In this article, we’ll outline the year that was in the OLG Performance Report of 2022. We’ll discuss the wins, the failures and what we plan on doing differently in 2023. By the end of this article, you’ll appreciate how hard we’ve been working to get our grades up.
Metrics For Success
At OLG, we believe a successful year comes down to more than just profits. The ultimate company report card is focused on the customer experience. Everything from on-time deliveries to warranty replacement rates and a customer satisfaction score.
These are the things our customers said mattered more than anything else, so we listened.
One of the main drivers behind OLG’s 2020 move to our Marsden Park warehouse was logistics. Traditionally, we’d relied on transport partners to both store and deliver our orders around the country. While this worked reasonably well, there are a few drawbacks to this kind of arrangement. Firstly, the amount of stock we could carry was limited by the available room in our partner’s warehouse. Secondly, we had little control over how our product was stored, picked, packed, or transported.
The new space meant we could store a much higher amount of inventory and had better order-picking oversight. As new warehousing systems have been embedded, and inventory levels optimized, we’ve seen a drastic improvement in our ability to dispatch on the same day that orders are received.
OLG’s new warehouse has also positively affected our fill rate, or order fulfilment rate. Essentially, this rate is the percentage of orders that we shipped from our available stock without any backorders or lost sales. Fill rates are a good reflection of a company’s ability to meet large customer demands at short notice.
Since the recording of fill rate figures began in Q2 of 2022, we’ve seen a steady improvement beyond our target of 96% fulfilment.
DIFOT, or “Deliver in Full on Time” is a measurement of logistics or delivery performance within a company’s supply chain. Like fill rate, DIFOT is a great barometer for how competent a business is in delivering its products on time and in full regardless of the size of the order.
OLG has remained relatively consistent in 2022 with a mean DIFOT of 92%, a slight improvement over 2021’s DIFOT score of 91.5%. Our rolling average has us right on target to ensure high rates of delivery fulfillment.
Product Warranty Returns
Investigating the data around product returns and warranty replacements is a great way to determine if a company supplies a durable and high-quality product that lasts the test of time.
Recent improvements in supplier manufacture quality and logistics have translated to a gradual but noticeable decline in product faults in 2022.
Unfortunately, we did see an increase when compared to product faults and warranty replacements in 2021, but the overall trend is encouraging.
Net Promoter Score (NPS)
Net Promoter Score or NPS is the gold standard when it comes to measuring customer sentiment and client satisfaction. First developed in 2003, NPS is used by millions of businesses to track how they are perceived by their customers.
Essentially, NPS measures the likelihood that your customers would recommend your products or services to a friend or colleague. Using a rating system of 0-10 in targeted survey questions, NPS categorizes your customers into three categories: promoters, passives, or detractors.
To calculate your NPS score – simply subtract the percentage of detractors from the percentage of promoters.
For example, if 5% of respondents are detractors, 25% are passives and 70% are promoters, your NPS score would be 70-5 = 65.
OLG implemented the NPS system in 2022 and since then, we’ve seen steady and sustained improvements in the way our customers perceive us.
Looking to the Future
While we’ve mostly seen improvements across the board in areas that matter to our customers, we’re not ready to rest on our laurels just yet. We know we can always do better and that’s why there are several optimizations planned throughout the year to make sure we are a customer-focused business in 2023.
- Complete comprehensive supply chain review and create plan to reduce customer issues from 18/month to 8/month.
- Implement 4 process improvements.
- Expand NSW driver delivery and installation capabilities with three new full-time staff.
- Review DIFOT rate & improvements and recommend accuracy promise.
We’re Only a Phone Call Away
If you’re looking for options in your next office fit-out project or product line refresh, give us a call at 02 8188 2732 and we’ll explore a handful of options with you.