Finalized Delivery Rate
Finalized Delivery Rate is delivered orders divided by orders that reached a final state, with orders still in progress excluded from both sides. It is a method Rabehni uses to answer one specific question: "Of the orders that finished, how many arrived?"
Not every delivery measure uses the same denominator, and those are not errors. They are different questions.
Finalized Orders = Delivered + Returned + Failed + Cancelled
The denominator changes with the question
| Question | Right denominator |
|---|---|
| Carrier performance | Orders actually handed to the carrier (delivered ÷ shipped) |
| Internal fulfilment efficiency | Orders eligible for shipping |
| Keeping the time promise | Logistics measures such as OTIF, with their own denominator |
| The order's final outcome | Orders that reached a final state |
That is why the number alone is not enough: any delivery rate must be quoted with its denominator, or comparing it with another number means nothing.
What counts in the calculation?
Final statuses
- Delivered: reached the customer and was collected.
- Returned: came back after a delivery attempt or after receipt.
- Failed delivery: the carrier sent it back undelivered.
- Cancelled: cancelled before or after shipping.
Excluded: the order is still in progress
- Awaiting confirmation
- Being prepared
- In shipping
- Shipping issue being handled
Why exclude them: an order still in shipping is not a failure. It is still trying. Counting it in the denominator marks it as failed before it has finished.
Why the gap is large
Same store, same moment, a 15-point gap, with nothing changed but the denominator. The gap grows as the share of open orders grows.
The common mistake
Counting open orders as failures. This happens most when there is a queue of orders sitting without movement. The rate then keeps falling, and the cause is not shipping performance: those orders never entered the line. Order Limbo explains how to measure them.
FAQ
How long should I wait before calculating?
Calculate on a mature cohort: exclude recently created orders, because they have not had their time yet. The right wait is your longest delivery cycle plus a margin.
How do I count a return after receipt?
It is a definition decision: if you refund the customer it is a return, and if you only exchange it is a successful delivery at extra cost. What matters is fixing the definition and stating it next to the number.
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