An e-commerce retailer wants to introduce a non-financial performance indicator to monitor the quality of its delivery service. Which of the following would be the most appropriate metric?

Answer options:

Average delivery cost per order.

Percentage of orders delivered on or before the promised date.

Total revenue generated from expedited shipping fees.

Number of warehouse employees hired.

How to approach this question

Look for a metric that does not involve money (non-financial) and directly assesses how well the delivery service is performing (quality).

Full Answer

B.Percentage of orders delivered on or before the promised date.✓ Correct

Non-financial indicators measure performance in terms other than money. The percentage of on-time deliveries is a classic non-financial measure of service quality. Options A and C are financial, and Option D does not measure delivery quality.

Common mistakes

Selecting a financial metric like cost per order.

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