Book to Ship Ratio - Explained
What is the Book-to-Ship Ratio?
Written by J. Mance Gordon
Updated at April 21st, 2024
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What is the Book To Ship Ratio?
The book to ship ratio refers to the proportion of the total orders booked for future shipment to those that have been shipped and billed by a company.
The book to ship ratio measures whether demand is weak or strong and the efficiency of a company in meeting and delivering orders. It also helps to identify problems in the supply chain and how they can be tackled.