PO On-time Accuracy

PO On-time Accuracy is a metric used to assess whether confirmed products arrive within the specified purchase order (PO) window. This metric is vital for maintaining compliance and avoiding chargebacks. It is evaluated based on the Carrier Requested Delivery Date (CRDD) for prepaid shipping and the Freight Ready Date (FRD) for collect shipping.

Non-compliance occurs when PO line items do not arrive or ship on time, are revised down, or are canceled. Chargebacks are categorized as “Not on time,” “Not filled,” and “Down-confirmed.” Vendors are encouraged to maintain a four-week average on-time rate of over 90% to avoid these penalties.

Weekly reports on PO accuracy are provided via the Operational Performance dashboard. Chargebacks, if applicable, are calculated as a percentage of the product cost, depending on the issue type, and are assessed at predefined process points, rather than at the time of the non-compliance occurrence.