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Supply Chain Key Performance Indicators (KPIs)

Supply Chain Key Performance Indicators (KPIs)

Click on any group within the Supply Chain department to view its KPIs:

Inventory Management

Carrying cost of inventory

The cost of storing and maintaining inventory, including warehousing, insurance, and depreciation. It helps identify opportunities to reduce inventory costs without sacrificing customer service levels.

Days of Inventory

How many days of sales the inventory can support. The KPI is calculated as the average inventory value over a period of time divided by the average daily cost of goods sold.

Fill Rate

The percentage of customer orders that are filled completely and on time. The KPI is calculated as the number of items shipped on time divided by the total number of items ordered.

Inventory Accuracy

How well the inventory records match the physical inventory. The KPI is calculated as the number of items in inventory that match the records divided by the total number of items in inventory.

Inventory turnover rate

How many times inventory is sold and replaced within a given period. It helps determine if inventory levels are too high or too low, and if adjustments are needed to optimize inventory management.

Order accuracy rate

The percentage of orders that are accurately fulfilled without errors, such as wrong items, wrong quantities, or damaged products. It helps assess the effectiveness of inventory management and order processing, and identify areas for improvement in the supply chain process.

Order lead time

The time it takes to fulfill an order, from the moment it is placed to the moment it is delivered to the customer. It helps assess the efficiency of inventory management and order processing.

Stockout rate

The frequency and duration of stockouts (i.e., when a product is out of stock) within a given period. It helps assess the effectiveness of inventory forecasting and management.

Logistics/Transportation

Average miles per gallon (MPG) of fleet

The average fuel efficiency of the company’s transportation fleet. A higher MPG indicates more fuel-efficient and environmentally-friendly transportation operations.

Customer satisfaction with delivery

Customer satisfaction with the company’s delivery operations. A higher satisfaction rate indicates that customers are receiving their orders in a timely and efficient manner.

On-time delivery rate

The percentage of shipments that are delivered on time. A higher rate indicates more efficient and reliable transportation operations.

Shipment lead time

The time it takes for a shipment to be delivered from the time it is ordered. A shorter lead time indicates more efficient transportation operations.

Transportation cost per unit

The cost of transportation per unit of product shipped. A lower cost indicates more efficient transportation operations.

Production Planning and Scheduling

Capacity Utilization

The percentage of available production capacity that is actually used in a given period of time.

Inventory Turnover

The number of times inventory is sold and replaced over a given period of time.

Production Cycle Time

The amount of time it takes to complete a single production cycle, from the start of production to the delivery of the finished product.

Production Schedule Attainment

The percentage of the planned production schedule that is achieved within a given period of time.

Schedule Adherence

How closely production actually follows the planned schedule, taking into account any adjustments or changes made during the production process.

Quality Control/Assurance

Cost of Quality

The total cost of all activities related to quality control and assurance, including prevention, appraisal, and failure costs. It helps identify areas of improvement and opportunities to reduce costs while maintaining quality standards.

Customer Complaints

The number of complaints received from customers related to product quality or performance. It helps identify opportunities to improve customer satisfaction and product quality.

Defect Rate

The percentage of defective units produced within a specific timeframe. It helps identify areas of improvement in the production process and supplier quality.

First Pass Yield (FPY)

The percentage of units that pass quality control on the first attempt. It indicates the effectiveness of the quality control process and the level of waste or rework.

Inspection Efficiency

The number of products inspected per hour or per day.

On-Time Delivery

The percentage of products that are delivered on or before the scheduled delivery date. It indicates the level of reliability of the supplier and the effectiveness of the planning and scheduling process.

Production Downtime

The amount of time that production is halted due to quality issues.

Supplier Quality

The percentage of products received from suppliers that meet quality standards.

Time to Detect and Resolve Quality Issues

The time it takes to identify and resolve quality issues from the time they are discovered.

Yield Improvement

The percentage increase in the number of products that pass inspection after implementing quality improvements.

Supplier Relationship Management

Contract compliance rate

The percentage of contracts that are adhered to by both parties, helping to mitigate risks and ensure compliance with legal and ethical standards.

Cost of goods sold (COGS)

The cost of raw materials and other inputs required for production, helping to identify cost-saving opportunities and optimize the supply chain.

Cost savings through negotiations

The cost savings achieved through negotiations with suppliers on price, delivery, and payment terms.

On-time delivery rate

The percentage of deliveries that arrive on time, helping to ensure timely delivery of goods to customers and avoid disruptions in the supply chain.

Supplier development initiatives

The effectiveness of supplier development initiatives, such as training and development programs, to improve the capabilities and performance of key suppliers.

Supplier diversity spend

The percentage of spend allocated to suppliers from diverse backgrounds, such as minority-owned or women-owned businesses, promoting supplier diversity and inclusion.

Supplier lead time

The time it takes for a supplier to deliver goods after an order is placed, helping to ensure timely delivery of goods to customers.

Supplier performance scorecard

A supplier’s performance across various categories, including quality, delivery, price, and service, helping to identify areas of improvement and build stronger relationships with key suppliers.

Supplier quality rating

The quality of goods and services provided by suppliers, helping to identify opportunities for improvement and ensure consistency in quality standards.

Supply chain risk management

The effectiveness of risk management strategies in the supply chain, such as contingency planning and supplier diversification, to mitigate potential disruptions and ensure business continuity.

Sustainability and Corporate Social Responsibility

Carbon emissions reduction

The amount of greenhouse gases emitted by the company’s supply chain operations and setting targets to reduce them over time.

Customer satisfaction score

The satisfaction of customers with the technical documentation created by the team, and is a good indicator of the quality of work produced.

Document version control

The accuracy and completeness of document version control, which is an important indicator of the team’s attention to detail and ability to manage complex documentation systems.

Documentation accuracy rate

The number of errors in technical documentation against the total number of pages reviewed, and is a key indicator of the team’s attention to detail.

Knowledge base usage

The number of times the team’s documentation is accessed by other teams or departments within the organization, which is an indicator of the usefulness and relevance of the team’s work.

Revision cycle time

The time it takes to revise and update technical documents, which is an indicator of the team’s responsiveness and agility.

Social impact

The social impact of the company’s supply chain operations on workers, communities, and other stakeholders, and identifying opportunities for improvement.

Supplier sustainability performance

The sustainability performance of suppliers and assessing their adherence to the company’s sustainability and social responsibility standards.

Sustainable sourcing

The percentage of raw materials and components sourced from suppliers that adhere to the company’s sustainability and social responsibility standards, and setting targets to increase that percentage over time.

Waste reduction

The amount of waste generated by supply chain operations, including packaging materials and products that are discarded or returned.

Warehousing/Distribution

Inventory accuracy rate

The percentage of inventory items that are accurately accounted for in the warehouse. A high accuracy rate indicates that the warehouse is effectively managing inventory and reducing the risk of stockouts or overstocking.

Order cycle time

The time it takes for a customer order to be processed, picked, packed, and shipped. A low order cycle time indicates that the warehouse is operating efficiently and effectively.

Order fill rate

The percentage of customer orders that are fulfilled on time and in full. A high order fill rate indicates that the warehouse is meeting customer demand and providing a high level of customer service.

Perfect order rate

The percentage of orders that are delivered to customers without any errors or defects. A high perfect order rate indicates that the warehouse is delivering high-quality products and services to customers.

Warehouse capacity utilization

The percentage of warehouse capacity that is being used to store inventory. A high utilization rate indicates that the warehouse is efficiently using its available space, reducing the need for additional storage facilities.