Operations Metrics
Optimise operational efficiency with the right metrics: AOV, cart abandonment, inventory turnover, fulfilment cycle time, on-time delivery, and throughput.
Operations metrics glossary: definitions and formulas for AOV, cart abandonment rate, inventory turnover, fulfilment cycle time, and throughput.
9 metrics
Average order value (AOV)
Revenue per transaction
Operations MetricsMetric Definition
AOV = Total Revenue / Number of Orders
Average order value measures the mean amount spent each time a customer places an order. It is a core e-commerce and retail metric that directly influences revenue, profitability, and customer acquisition efficiency.
View metricCart abandonment rate
Checkout drop-off
Operations MetricsMetric Definition
Cart Abandonment Rate = (1 − Completed Purchases / Carts Created) × 100
Cart abandonment rate measures the percentage of online shopping carts that are created but not converted into completed purchases. It is one of the most impactful e-commerce metrics because it represents revenue that was within reach but lost at the final stage of the buying journey.
View metricInventory turnover
Stock efficiency
Operations MetricsMetric Definition
Inventory Turnover = Cost of Goods Sold / Average Inventory
Inventory turnover measures how many times a business sells and replaces its inventory during a given period. It is a critical operations and finance metric that reveals how efficiently capital is being deployed in stock.
View metricOrder fulfilment cycle time
Order-to-delivery speed
Operations MetricsMetric Definition
Fulfilment Cycle Time = Delivery Date − Order Placement Date
Order fulfilment cycle time measures the total elapsed time from when a customer places an order to when they receive it. It is a critical operations metric that directly affects customer satisfaction, repeat purchase rates, and competitive positioning.
View metricOn-time delivery rate
Delivery reliability
Operations MetricsMetric Definition
On-Time Delivery Rate = (Orders Delivered On Time / Total Orders Delivered) × 100
On-time delivery rate measures the percentage of orders delivered by the promised date. It is a critical customer experience metric that directly affects satisfaction, loyalty, and the organisation's reputation for reliability.
View metricFirst contact resolution (FCR)
Support effectiveness
Operations MetricsMetric Definition
FCR Rate = (Issues Resolved on First Contact / Total Issues Handled) × 100
First contact resolution measures the percentage of customer enquiries resolved during the first interaction without requiring follow-up contacts, transfers, or escalations. It is the single most influential metric for customer satisfaction in support operations.
View metricCapacity utilisation rate
Resource efficiency
Operations MetricsMetric Definition
Capacity Utilisation Rate = (Actual Output / Maximum Possible Output) × 100
Capacity utilisation rate measures the percentage of total available production or operational capacity that is actually being used. It reveals whether an organisation is underusing its resources or pushing them beyond sustainable limits.
View metricCycle time
Process speed
Operations MetricsMetric Definition
Cycle Time = Process End Time − Process Start Time
Cycle time measures the total elapsed time from the start to the end of a process. It is a fundamental operations metric used in manufacturing, software development, service delivery, and any context where the speed of a process directly affects throughput, cost, and customer satisfaction.
View metricThroughput
Output volume
Operations MetricsMetric Definition
Throughput = Total Units Completed / Time Period
Throughput measures the number of units produced, tasks completed, or transactions processed in a given time period. It is the fundamental measure of an operation's productive capacity and the primary output metric for manufacturing, logistics, software development, and service delivery.
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