What is Purchase Order Average Delivery Time in SAP MM-PUR - Purchasing?

SAP Term: Purchase Order Average Delivery Time

• Component: MM-PUR

• Component Name: Purchasing

• Description: This KPI helps to check the average delivery time of orders to the suppliers.

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• Key Concepts: 
  Purchase Order Average Delivery Time is a metric used in the Materials Management (MM) Purchasing component of SAP to measure the average time it takes for a purchase order to be delivered. This metric is used to track the performance of suppliers and ensure that they are meeting their delivery commitments. 
  
  How to use it: 
  Purchase Order Average Delivery Time can be calculated by taking the total number of days between when a purchase order is placed and when it is received, and dividing it by the total number of purchase orders. This metric can be used to compare different suppliers and identify which ones are performing better in terms of delivery times. 
  
  Tips & Tricks: 
  It is important to ensure that all purchase orders are tracked accurately in order to get an accurate measurement of Purchase Order Average Delivery Time. Additionally, it is important to take into account any delays that may have been caused by external factors such as weather or transportation issues. 
  
  Related Information: 
  Purchase Order Average Delivery Time is closely related to other metrics such as On-Time Delivery Rate and Lead Time Variance. These metrics can be used together to get a better understanding of supplier performance and identify areas for improvement.