Perfect Order and Its Components: Application for Deliveries of Fast Moving Consumer Goods to Retail Stores

Abstract

The perfect order concept is traditionally used to measure logistics performance. However, this often brings a wide range of practical problems with it because 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 create a novel understanding of the perfect order concept with respect to recent changes in business environment. Based on the primary survey in 132 Czech retail stores, the authors identified the key components that constitute a perfect order fulfilment of fast moving consumer goods to retail stores, namely reliability, collaboration, exfra adaptation, ordering, and promotion. Subsequently, it was found that there are differences in the importance of the identified components depending on the retail store type. Promotion and exfra adaptation services are more important for stores with consumer chemicals, methods of ordering are more important for small stores or stores with food products and collaboration activities are more important for retail chain stores. The revised definition of the perfect order supports better understanding the customer needs and, thus, could contribute to supply chain performance, especially in the supply chains with fast moving consumer goods.