Building a Supply Chain KPI Framework
How to build a small, connected KPI set that drives decisions instead of reporting.
By SupplyChain.management · Last updated
Definition
A KPI framework is a structured, connected set of measures linking strategic outcomes to the operational drivers teams can act on.
Why it matters
Most organisations have too many metrics and too few decisions. A framework fixes the connection between the two.
Example
A tier structure links cash-to-cash and perfect order at executive level to fill rate, OTIF and forecast accuracy at operational level.
How to interpret it
If a metric has no owner and no decision attached, it is reporting rather than management.
How to improve it
Limit each level to a handful of measures, define each one in writing, assign owners, and review in a standing cadence.
Common mistakes
Adding metrics without retiring any, until reviews become status readouts.