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Key Indicators to Measure Supply Chain Performance

There is a lot of metrics to keep track in the varies function, but a supply chain should focus the essential or real Key Performance Indicators (KPIs) which will display the most important headlines immediately. It should not be difficult to determine which KPIs to capture, nonetheless, every industries and environment is unique, it is not prescriptive here but merely a guide for majority organization for a most reliable source of actionable performance data. They were namely – Perfect Orders, Fill Rates, Cash to Cash Cycle Time, Inventory Days of Supply, Customer Order Cycle Time and Total Supply Chain Management Cost as Percentage of Sales.

Performance Indicator of Order Fulfilment

Always aim for perfect orders, results in associate with your performance, provide an insight of challenges impacting services, cost and supply chain effectiveness.

The key components are:

On time delivery – a calculation that determined by the percentage of sales orders that delivered on time.
In full delivery – the percentage of sales orders that are delivered as per promised, in good contents categorized under quantity and quality of the say the contains.
Damage-free delivery – measurement can be incorporated into full metric as above or stand-alone.
Accurate documentation – the percentage of sales orders which is accomplished with required documents throughout. Documents may vary but commonly includes advance shipment notification, labels and invoices. In some cases, heat test, milling certificates, certificates of origin, certificates of free sales, etc.are essential and normally imposed with a fine for not providing them on time.

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Benny Seet Jin Peng, DLSM
Benny Seet Jin Peng, DLSM
Benny Seet Jin Peng has extensive experiences in Logistics, Shipping & Order Fulfilment. He is passionate about exploring the potential applications of Logistics integration with Supply Chain to improve workplace efficiency and reduce cost for an organization. Benny is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM), and he completed the Diploma in Logistics and Supply Management (DLSM) course on December 2019 at SIPMM Institute.
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