Service Level

What is Service Level of warehousing?

The service level of warehousing, also known as the delivery readiness level, refers to the ability of a warehouse to deliver as well as the readiness of a company to deliver at the time of the customer's request. It can be calculated from the ratio of all completely satisfied orders.

How high the service level of a company's warehousing must be depends on the market environment of the industry. A car dealer, for example, does not always have the car the customer wants in stock immediately in the right colour and with the required equipment. Also, the consumer in food retailing certainly expects to receive the product he is looking for directly.