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Supply Chain KPIs

The document outlines key performance indicators (KPIs) for supply chain management, including metrics for reliability, responsiveness, agility, costs, and asset management. It provides definitions and formulas for the top 10 supply chain KPIs, such as inventory turnover, order fulfillment, and on-time delivery. Additionally, it suggests analysis tools and implementation strategies for measuring and improving supply chain performance.

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Roopesh V
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0% found this document useful (0 votes)
89 views1 page

Supply Chain KPIs

The document outlines key performance indicators (KPIs) for supply chain management, including metrics for reliability, responsiveness, agility, costs, and asset management. It provides definitions and formulas for the top 10 supply chain KPIs, such as inventory turnover, order fulfillment, and on-time delivery. Additionally, it suggests analysis tools and implementation strategies for measuring and improving supply chain performance.

Uploaded by

Roopesh V
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Supply Chain KPIs Cheat Sheet

Performance Balanced Top 10 Supply Chain KPIs:


Attributes Scorecard Definition & Formula

Supply Chain Reliability: Customer Financial Measures how quickly inventory is sold.
The consistent and
Inventory
“To achieve our “To succeed Formula: Cost of Goods Sold (COGS) /
accurate delivery of vision, how financially, how Turnover: Average Inventory
Objectives

Objectives
Measures

Initiatives

Measures

Initiatives
products to the right place, Targets should we should we

Targets
at the right time, and in the appear to our appear to our Order Evaluates the speed of order processing
customers?” shareholders?” and delivery.
right condition. Fulfillment
(Order Completion Time - Order
Cycle Time: Placement Time) / No. of Orders
Gauges the percentage of error-free, on-
Perfect time, and complete orders.
Supply Chain
Responsiveness: Vision & Order Date: (Total Perfect Orders / Total Orders) *
100
The rate at which the
supply chain delivers Strategy Supplier On-
time
Assesses the reliability of suppliers in
delivering goods on schedule.
products to customers. Internal (On-time Supplier Deliveries / Total
Learning & Delivery: Supplier Deliveries) * 100
Business
Growth Measures the percentage of orders
Processes On-time delivered on or before the promised date.

Objectives
Objectives

Supply Chain Agility: Delivery:

Measures

Initiatives
Measures

Initiatives

To achieve our To satisfy our (On-time Deliveries / Total Deliveries) *

Targets
Targets

The capacity of the supply vision. how will shareholders 100


chain to adapt to market we sustain our and customers,
changes, enabling it to gain ability to change what business
or sustain a competitive and improve? processes must Cost per Calculates the average cost associated
we excel at? processing and fulfilling an order.
edge. order: Total Supply Chain Costs / No. of Orders

Measures how quickly inventory is


How to Measure Key Performance Indicators Days Sales converted into sales.
(Average Inventory / Cost of Goods
Supply Chain Costs: of Inventory:
Sold) * No. of Days
The expenses linked to Raw #S Progress Change
the operation of the Cash-to- Measures the time to convert inventory
investments into cash.
supply chain. # of new % increase of Cash cycle Days Inventory Outstanding + Days Sales
Measure % complete
customers sales orders time: Outstanding - Days Payable Outstanding
Overall Evaluates the efficiency of manufacturing
Target 1.000 100% 22% Equipment equipment and processes.
Supply Chain Asset
Management: Availability * Performance * Quality
Effectiveness
Efficient management of
Source CRM Project Plan P&L
Examines the percentage of products
assets, encompassing fixed
assets and working capital, to Return Rate: returned by customers.
meet demand requirements in Frequency Monthly Quarterly Monthly (No. of Returns / Total Units Sold) * 100
the supply chain.

The 7 Basic Analysis Tools To Use

Cause & Effect Flowcharts Checksheets Pareto Histograms Control Scatter


Diagram Diagrams
x Charts Diagrams
Communicate purpose
of KPI metrics
measurement to Learn More with our course
partners.

“Must know Metrics for Supply Chain Professionals”


How to Develop goals and
measures consistent
Implement with internal and SC

Metrics? strategies. https://www.scmdojo.com/academy/courses/must-know-


metrics-for-supply-chain-professionals/
Create schedules
and assign
responsibilities.
www.scmdojo.com Author Credit: Paul Denneman

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