Supply Chain Performance

In manufacturing, assessing supply chain performance is crucial for optimizing operations and ensuring efficiency. Here are 10 KPIs commonly used to evaluate supply chain performance:

On-Time Delivery: Measure the percentage of orders delivered on time to assess reliability.

Inventory Turnover: Calculate how many times inventory is sold and replaced within a specific period to gauge efficiency.

Order Cycle Time: Evaluate the time taken from order placement to delivery to monitor speed.

Perfect Order Rate: Determine the percentage of orders delivered without errors to measure accuracy.

Supplier Lead Time: Assess the time taken by suppliers to deliver materials for production.

Fill Rate: Measure the percentage of customer demand fulfilled from available inventory.

Return Rate: Evaluate the percentage of products returned by customers to monitor quality.

Cost of Goods Sold (COGS): Analyze the direct costs associated with producing goods to manage expenses.

Supply Chain Cycle Time: Calculate the time taken for a product to move through the entire supply chain.

Cash-to-Cash Cycle Time: Evaluate the time taken to convert cash spent on inventory back into cash through sales.