Glossary Discription

Degree of Readiness to Deliver is a key performance indicator (KPI) that measures an organization’s capability to fulfill customer orders immediately from available inventory without delays, backorders, or stockouts. This metric quantifies the percentage or ratio of customer orders that can be satisfied directly from existing stock at the time of order placement, serving as a critical measure of supply chain responsiveness and inventory adequacy. The degree of readiness to deliver directly reflects the effectiveness of an organization’s inventory management strategy and its ability to meet customer demand in real-time. This metric is fundamental to evaluating delivery service levels and plays a central role in strategic decisions regarding stock policies, safety stock levels, and capital allocation across the supply chain.

Calculation Method

Degree of Readiness to Deliver = (Number of Orders Delivered Immediately from Stock / Total Number of Orders Received) × 100