Supply Chain KPIs

Browse KPIs by category. Each entry covers the definition, formula, how to interpret the number and how to improve it.

28 KPIs

• Financial
  Cash-to-Cash CycleDays between paying suppliers and collecting from customers.DIO + DSO - DPO
• Financial
  Days Inventory OutstandingAverage number of days inventory is held before sale.(Average Inventory / COGS) x 365
• Inventory
  Days of SupplyHow many days of forward demand current inventory covers.Days of Supply = On-Hand Inventory / Average Daily Demand
• Planning
  Demand Plan AttainmentHow closely actual demand followed the agreed demand plan for the period.Demand Plan Attainment = 1 - (ABS(Actual Demand - Planned Demand) / Planned Demand)
• Warehousing
  Dock-to-Stock TimeElapsed time from receipt at the dock to stock being available to pick.Total Dock-to-Stock Hours / Receipts
• Inventory
  Excess and Obsolete InventoryThe value of inventory above forward requirements or no longer sellable.E and O % = Excess and Obsolete Value / Total Inventory Value x 100
• Customer Service
  Fill RateThe share of demand satisfied from available stock.Units Shipped / Units Ordered x 100
• Planning
  Forecast AccuracyHow close forecasts were to actual demand.100% - MAPE, where MAPE = mean(|Actual - Forecast| / Actual)
• Planning
  Forecast BiasThe consistent direction of forecast error.Sum(Forecast - Actual) / Sum(Actual) x 100
• Transportation
  Freight Cost as a Percent of SalesTotal freight spend expressed as a share of revenue.Freight % of Sales = Total Freight Spend / Net Sales x 100
• Financial
  GMROI (Gross Margin Return on Inventory)Gross margin generated per unit of inventory cost invested.GMROI = Gross Margin / Average Inventory at Cost
• Warehousing
  Inventory Record AccuracyThe share of counted locations or items whose system quantity matches the physical quantity.IRA = Matching Records / Records Counted x 100
• Inventory
  Inventory TurnoverHow many times inventory is sold and replaced over a period.Cost of Goods Sold / Average Inventory Value
• Warehousing
  Lines Picked per HourProductivity of picking labour measured in order lines per worked hour.Lines per Hour = Lines Picked / Labour Hours Worked
• Transportation
  On-Time DeliveryThe share of shipments delivered within the agreed delivery window.OTD = Shipments Delivered On Time / Total Shipments x 100
• Customer Service
  Order Cycle TimeElapsed time from customer order receipt to delivery.Order Cycle Time = Delivery Date and Time - Order Receipt Date and Time
• Warehousing
  Order Picking AccuracyThe share of order lines picked without error.Picking Accuracy = (Lines Picked - Lines With Errors) / Lines Picked x 100
• Supplier Performance
  OTIF (On Time In Full)Orders delivered both on time and complete.Orders On Time and In Full / Total Orders x 100
• Customer Service
  Perfect Order RateShare of orders delivered complete, on time, damage free and correctly documented.Perfect Orders / Total Orders x 100
• Planning
  Production Schedule AdherenceThe share of scheduled production completed as planned, in the planned sequence and quantity.Schedule Adherence = Units Produced As Scheduled / Units Scheduled x 100
• Procurement
  Purchase Price VarianceThe difference between the price actually paid and the standard or expected price.PPV = (Actual Unit Price - Standard Unit Price) x Quantity Purchased
• Procurement
  Spend Under ManagementThe share of total addressable spend actively managed through sourcing, contracts and supplier governance.Spend Under Management = Managed Spend / Total Addressable Spend x 100
• Inventory
  Stockout RateThe share of items or item-locations that were out of stock during the period.Stockout Rate = Stocked-Out Item-Days / Total Item-Days x 100
• Supplier Performance
  Supplier Lead TimeTime from placing a purchase order to receiving usable goods.Average(Receipt Date - Order Date)
• Supplier Performance
  Supplier Quality (PPM Defective)Defective parts per million received from a supplier.PPM = (Defective Units / Units Received) x 1,000,000
• Transportation
  Transportation Cost per UnitFreight spend divided by units shipped.Total Freight Cost / Units Shipped
• Transportation
  Truck Fill RateHow fully trailers are used against available weight or cube capacity.Truck Fill Rate = Loaded Weight or Cube / Available Capacity x 100
• Warehousing
  Warehouse UtilizationShare of usable storage capacity currently occupied.Occupied Storage Capacity / Total Usable Capacity x 100