There are many non-financial Key Performance Indicators (KPIs) that may be relevant to your business, below we have included some of the KPIs that are commonly used to track and monitor and control Supply Chain Management.
As with all KPIs and goals in general, ‘less is more’, so ideally you will select the handful of KPIs that are of greatest importance to the business to track and report on at top level management. The further down the organisation you go, some of the more granular KPIs are likely to be ideally for middle or junior level management and of course for staff on the ‘shop floor’.
The list below is not intended to be comprehensive; this is provided purely to help with the process of selecting those KPIs that are most relevant to your unique circumstances.
Definition: The percentage of orders delivered on or before the promised date.
Importance: Reflects the reliability and efficiency of the supply chain in meeting customer
Definition: The percentage of orders delivered without errors, such as incorrect items or quantities.
Importance: Ensures customer satisfaction and reduces the cost and time associated with returns
Definition: The number of times inventory is sold and replaced over a specific period.
Importance: Indicates how efficiently inventory is managed and helps in identifying excess or obsolete stock.
Definition: The total time taken from placing an order to delivery of goods.
Importance: A critical measure of supply chain responsiveness and efficiency
Definition: The percentage of customer demand that is met without stockouts.
Importance: High fill rates indicate good inventory management and customer satisfaction.
Definition: Various metrics to evaluate supplier reliability, quality, and delivery performance.
Importance: Ensures that suppliers consistently meet quality standards and delivery schedules.
Definition: The percentage of orders that are complete, accurate, and delivered on time.
Importance: A comprehensive measure of overall supply chain effectiveness.
Definition: The time taken to complete a specific supply chain process, such as manufacturing or order fulfilment.
Importance: Shorter cycle times indicate greater efficiency and faster response to market demands.
Definition: The percentage of products returned by customers.
Importance: Helps identify issues with product quality, order accuracy, or customer satisfaction.
Definition: The percentage of orders that cannot be fulfilled at the time of purchase due to stockouts.
Importance: Indicates inventory management effectiveness and potential customer dissatisfaction.
Definition: The cost of transportation per unit of product shipped.
Importance: Helps in assessing the cost-effectiveness of logistics operations
Definition: The extent to which the supply chain’s production capacity is being used.
Importance: Ensures optimal use of resources and identifies potential bottlenecks or excess capacity.
Definition: The average time from when an order is placed until it is received by the customer.
Importance: Reflects the overall efficiency of the order fulfilment process.
Definition: The accuracy of the forecasted demand compared to actual sales.
Importance: Ensures better inventory planning and reduces the risk of stockouts or overstocking.
Definition: The consistency of lead times from suppliers.
Importance: High variability can disrupt production schedules and delivery commitments.
Definition: The percentage of products that meet predefined quality standards.
Importance: Ensures customer satisfaction and reduces the costs associated with defects and rework.
Definition: The output per employee in the supply chain.
Importance: Higher productivity indicates efficient workforce management and process optimisation.
Definition: Various measures such as carbon footprint, energy usage, and waste reduction in the supply chain.
Importance: Reflects the environmental impact and sustainability efforts of the supply chain operations.
