Abstract
The perfect order concept is traditionally used to measure logistics performance, but the conventional assessment of the perfect order from the perspective of the “in-time, in-full and error-free” trinity is no longer viable today. This paper aims to make a modest contribution to creating a novel understanding of the perfect order concept. Based on the primary survey in 132 Czech retail stores, the authors identify the key components that constitute a perfect order fulfilment of fast moving consumer goods to retail stores, namely reliability, collaboration, extra adaptation, ordering, and promotion. Subsequently, it was discovered that there are the differences in the influence of the identified components depending on the retail store type. Retail stores in the sense of drugstores regard extra adaptation and promotion as being the more important components compared to retail stores specialising in food products. Independent retail stores regard collaboration and promotion as being much less important components compared to retail stores that form part of a retail chain. Ordering is a more important component for small retail stores compared to large retail stores. Retail stores located in a capital city and in towns representing the centres of individual regions regard collaboration and extra adaptation to be the more important components compared to retail stores located in small towns. Research results support perfection in measuring logistics performance and make it possible to improve retail store operation.
Highlights
Logistics performance measurement represents a constant challenge for all businesses
Based on the reasoning above, the objective of the paper is to find the key components of the perfect order fulfilment of fast moving consumer goods (FMCG) to retail stores with respect to recent changes in business environment
The research goal is threefold: – to identify the importance of logistics services associated with FMCG deliveries to retail stores, – to identify the key components that constitute a perfect order fulfilment of FMCG to retail stores, – to identify the differences in the importance of the identified components depending on the retail store type
Summary
Logistics performance measurement represents a constant challenge for all businesses. According to Christopher (2016) the perfect order is achieved when each of the customers service requirements are met to the customer's satisfaction. The application of the perfect order benchmark as the indicator of the logistics performance is not without its problems. According to Novack & Thomas (2004) the most fundamental underlying issue is deciding which elements, referred to hereinafter as components, to include in the perfect order, how to account for the customers’ and business’s perspective with respect to the individual elements of the performance (meaning the resources invested to achieve the perfect order), what weight to attribute to various elements when evaluating the perfect order, whether some elements of the order may be substituted for others and which qualities of the individual elements should be emphasized when provided to customers in the form of a service. Additional problems come to arise with respect to the actual measurement of the perfect order (after the end of the monitored period) and in introducing improvements based on the outcome of the perfect order measurement
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