What is purchase order fulfillment ratio in SAP SRD-SRM-PRO - SRM-Purchase Requests and Orders?

SAP Term: purchase order fulfillment ratio

• Component: SRD-SRM-PRO

• Component Name: SRM-Purchase Requests and Orders

• Description: The number of purchase orders completed on time and with the right quantity, compared to the total number of purchase order items for the purchasing organization in the current year.

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• Key Concepts: 
  Purchase order fulfillment ratio is a metric used to measure the efficiency of a company’s purchase order process. It is calculated by dividing the number of purchase orders that have been fulfilled by the total number of purchase orders placed. This ratio helps companies identify areas of improvement in their purchasing process and can be used to track progress over time. 
  
  How to use it: 
  In SAP SRM-Purchase Requests and Orders, purchase order fulfillment ratio can be calculated by using the “Purchase Order Fulfillment Ratio” report. This report will provide a breakdown of the number of purchase orders that have been fulfilled, as well as the total number of purchase orders placed. The report can be used to track progress over time and identify areas of improvement in the purchasing process. 
  
  Tips & Tricks: 
  It is important to ensure that all purchase orders are accurately tracked and recorded in order to get an accurate picture of the purchase order fulfillment ratio. Additionally, it is important to review the report regularly in order to identify any areas of improvement or potential issues with the purchasing process. 
  
  Related Information: 
  The purchase order fulfillment ratio is closely related to other metrics such as on-time delivery rate and supplier performance. These metrics can be used together to gain a better understanding of a company’s purchasing process and identify areas for improvement. Additionally, these metrics can be used to compare different suppliers and determine which supplier is providing the best service.