May 30, 2024
10 KPIs to Optimize Your Supply Chain Performance
Get this guide to enhance resilience, efficiency and scalability
Efficient and effective supply chain management is crucial for any business that imports or exports goods. Understanding and monitoring the right key performance indicators (KPIs) allows companies to spot potential issues before they escalate and identify opportunities for improvement that can significantly enhance operational efficiency. Our ebook, Cheat Sheet: 10 Supply Chain KPIs The Most Productive Companies Track is your guide to mastering supply chain performance metrics.
Choosing the appropriate KPIs depends on various factors, including your industry, business model, and unique operational challenges. To help you navigate this complex decision, we have compiled a comprehensive cheat sheet detailing the top 10 KPIs that the world's most productive companies rely on to optimize their supply chains.
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Which are the top 10 KPIs to optimize your supply chain?
1. Perfect Order Rate
This multifaceted KPI aggregates several metrics to give a holistic view of your order fulfillment process, from timely and complete deliveries to error-free documentation. Tracking this KPI can improve customer satisfaction and enhance collaboration across your supply chain.
2. Order Fulfillment Cycle Time
Measure the time it takes from receiving an order to its delivery. Shorter cycle times indicate a more efficient process, while longer ones suggest potential disruptions.
3. Inventory Days of Supply
Also known as days in inventory, this KPI shows how long products remain in stock before being sold. It helps manage cash flow and inventory efficiency.
4. Inventory Turnover
Understand the rate at which your inventory is sold and replaced. This KPI provides insights into demand forecasting accuracy and inventory management effectiveness.
5. Cash-to-Cash Cycle Time
Track the time between outlaying cash for raw materials and receiving cash from product sales. This metric helps improve liquidity and reduce the need for external financing.
6. Supply Chain Cost Per Unit
Calculate the total cost associated with producing and delivering a single unit of product. This KPI is vital for scaling operations and cost management.
Download the cheat sheet to discover 4 more supply chain KPIs
Curious about the remaining KPIs that can further optimize your supply chain? Download the cheat sheet to discover four additional essential KPIs that will help you streamline operations, enhance performance, and drive your business forward. Don’t miss out on these valuable insights—get your free copy now!