155 Definitions – Priority target measures

Definitions – Priority target measures

The target measures are based on three important dimensions in the term «service level»:

  • Quantity – availability
  • Time – reliability
  • Administration – security

The priority targets measures should be followed and evaluated continuously with focus on level, trends and development.

Target measures Correct quantity – availability

The target measure “Correct quantity” measures availability as precision in quantity delivered.


Number of delivered sales Units = Availability
Quantity of ordered sales Units


The quantity ordered is the amount that the customer initially ordered.
Not delivered quantity represents deviations in delivery.

Target measure At the right time – reliability

The target measure “At the right time” measure reliability as precision in delivery time.

The target measure is used to measure compliance with time limits defined in the agreement between the parties.
The target measure can be used along several dimensions in the value chain.
Examples may be if orders are sent at the right time, if order confirmations are sent at the right time, if delivery is picked up at the right time, if Despatch Advice is sent at the right time, etc.

Definition (with example order):

Number of late or early delivery orders         = Reliability
Total quantity of orders


Delayed or premature is determined by whether exchange / delivery is within the agreed time frame.
At Incoterms Ex Works delivery terms, the assessment of the supplier’s reliability is on the supplier’s ramp.
The delivery is received when the order / delivery etc., is acknowledged for.

Target measures Correct Administration – Security

The target measure “Proper Administration” measures security as compliance between what is ordered in the order and what has been delivered and has been invoiced, that is, the correct product without errors and with the correct documentation.


Quantity of orders without credit / debit notes = SAFETY
Total quantity of orders


Correct administration means that Despatch Advice, shipping notes, invoices etc. are complete and error-free in relation to the delivery.
Only credit and debit notes affecting physical delivery are included in the measurement.
The target measure can also be used to measure the quality of orders from the customer.

Examples of calculation of service level for priority target measures can be found in the document

Examples of priority target measures

Published on: 2. August 2018