The meaning of this KPI is exactly the same as version 1, except that it measures the number of line items ordered on a V.O.R. basis as opposed to their monetary values.
These two methods of measuring V.O.R % are very different to each other and it is obviously critical that you know which of these versions your departmental reports are showing you.
Neither one of these methods of measuring the V.O.R % is any better than the other and neither one of them is right or wrong; it is really a matter of what you want to measure.
Both indicators are influenced by the frequency of the parts stock order that is provided by your franchise manufacturer.
Example:
A) Line Items Ordered on V.O.R. = 546 B) Total Line Items Ordered = 2601 C) V.O.R. % = 21% (A ÷ B X 100)
Discussion:
The suggested benchmark for keeping V.O.R% less than 25% is applicable to weekly stock orders. If your stock orders are more frequent, then your V.O.R% should be considerably lower.