7 Order Management KPIs To Measure Your Brand’s Success

Hamed Amiri

Having a sound order management strategy goes a long way to ensuring your business is succeeding. This means that your customers are happy and their level of satisfaction is high.

But how do you measure this?

RELATED: Manage Shopify Orders, Shipping and Inventory From a Single Dashboard With Blastramp

Luckily, there are some key order management performance metrics that can help you answer this question with in-depth information.

Here are 7 order management performance metrics you should measure to ensure your brand’s overall success.

Order Management Performance Metrics To Measure

Cost per Order

The cost per order, also called cost per purchase, is the total calculated cost it takes to fulfill an order. 

Some common and overlooked order costs include:

  • Marketing and advertising
  • Packaging
  • Product inspection

A high cost per order can chip away at your profit margins and jeopardize the long-term viability of your company if it goes unchecked. So how do you combat high cost per order? One tactic that companies use is putting in place minimum order quantities. 

Fulfillment Accuracy Rate

The second order management performance metric that’s important to track is fulfillment accuracy rate. This refers to the rate customers orders are filled without any errors. Now we know it’s both impossible and unrealistic to reach a 100% order accuracy rate, but your rate should be as close to 100% as possible. Having a low fulfillment accuracy rate will mean that your business needs to review its current fulfillment processes and address the issue before you fall behind your competitors.

Rate of Return

Rate of return is an order management performance metric that calculates the percentage of shipped items that are returned back to you. Having a high rate of return can mean a number of different things for your brand. It can mean that your product quality is low, or your customers weren’t happy with what they received because it didn’t meet their expectations. Having a high return rate also means that your staff have to spend more time processing returns and that can bring on more additional costs for your company.

Order Fulfillment Cycle Time

Order fulfillment is defined as the complete process from point of sales inquiry to delivery of a product to the customer. Your order fulfillment cycle time shows how good your brand is at fulfilling your customers orders in as short of a time period as possible. Getting your products to your customers as quickly as possible goes a long way in ensuring customer satisfaction.

Perfect Order Rate

Perfect order rate is an order management performance metric that measures how many orders you ship without incident. Incidents can include damaged products/goods, delayed shipments, and inaccurate orders. If you have a low perfect order rate, your order fulfillment process and shipping methods need to be reviewed immediately. A perfect order rate of 90% is typically seen and that means only 10% of orders have some sort of issue. Now 10% might not seem like a lot, but minimizing these errors will go a long way in keeping your customers happy.

On-Time Shipping Rate

On-time shipping rate is calculated by dividing the total number of orders delivered by the number of deliveries that arrived after the promised delivery date. This KPI shows how smoothly your order fulfillment and shipping process works. If it takes a longer amount of time to get your goods processed and shipped out, customer dissatisfaction may arise.

Ever since the COVID-19 pandemic first started, shipping delays have impacted almost every industry due to supply chain bottlenecks. Even now in 2022, this problem is still evident. For example, Amazon Canada customers are facing shipping delays due to lockdown measures impacting the Chinese city of Shenzhen. Shenzhen is China’s tech hub and just recently got out of a seven-day lockdown that has disrupted global supply chains. Work has resumed in Shenzhen, but as we saw last year with the Suez Canal blockage, it could take weeks or even months for industries to catch up.

Scrap Rate

Scrap rate is a KPI that can be calculated by taking the number of scrapped orders and comparing it to the total number of returns. A high scrap rate means that when your products are returned by customers, your business is losing a lot of money that can’t be recovered. The time spent on the product and shipping costs are all gone at this point. Changing how your goods are packaged can help greatly with bringing down your scrap rate. 

Order Management Performance Metrics With Blastramp

Blastramp allows you to manage every aspect of your operations - from initial order through delivery and beyond. 

With our comprehensive platform and easy-to-use interface, we aim to solve the recurring inventory and sales order problems of manufacturers, wholesalers, and retailers.

We offer:

  • Inventory Forecasting: With integrated inventory forecasting and analysis tools, Blastramp allows you to make better buying decisions and manage your supply chain with ease.
  • Accessible Customer Tracking: Instantly manage credit holds, export information, and categorize customers based on distribution channels. Our detailed customer profiles provide you with complete order histories, account summaries, and much more.

Blastramp provides your business with all the tools necessary to mine your data to constantly improve.

Our software allows you to:

  • See customer sales & order history: Analyze order trends, product preferences and buying behavior.
  • Easily export data: Download data into accounting systems like QuickBooks and Xero.
  • Review your business’ performance management: From sales to order fulfillment, closely monitor and execute timely business decisions.

We make it easier than ever for ecommerce merchants to manage all their orders and returns — from partial fulfillment to multiple warehouses order management.

Learn More About Blastramp

If you’re interested in learning more about our cloud-based ERP software, you can take advantage of our Blast Academy, a set of training modules and step-by-step tutorials that guide you to get the most out of our cloud-based ERP software. Whether you’re looking for an answer to a specific question or want to build your Blastramp skills, our Blast Academy is the perfect one-stop-shop for your training needs. With Blast Academy by your side, you’ll be an expert in no time!

If you have any other questions that need to be answered, feel free to email us at

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