Logistics Operations and Customer Service
Domain 7 tests order management, customer service measurement, cost-to-serve, and reverse logistics.
Service metrics
Order cycle time runs from order receipt to delivery. Fill rate measures units or lines shipped complete; OTIF measures on-time and in-full delivery; the perfect order index requires on-time, complete, damage-free, and accurate documentation. Cost-to-serve allocates freight, handling, returns, and special services by customer or segment. Service recovery and SLA management matter when performance fails.
Worked example
A warehouse handles 500 orders: 20 are late, 10 incomplete, 5 damaged, and 2 have documentation errors. If no order has more than one defect, perfect orders are 500 − (20+10+5+2) = 463, so the perfect order index is 463/500 = 92.6%. If defects overlap, the unique perfect-order count is lower. The reasoning is to count orders meeting all criteria, not to add defect percentages, because overlapping defects double-count.
Traps that cost marks
Adding defect rates instead of counting perfect orders; using average fill rate to hide poor service to key accounts; ignoring cost-to-serve; treating all returns as waste; setting SLAs without measurement definitions.