10 Key Performance Indicators: A Guide for Supply Chain Planning Teams 

Supply chain operations can easily become a tangled web of inefficient processes without top-tier key performance indicators (KPIs). That’s why keeping track is paramount – the right ones allow organizations to gain valuable insights and stay on course toward success! From SLAs to inventory turnover rate, here are 10 must-have KPIs that’ll make navigating your operation seamless like never before.  

  1.  Order Fill Rate: The percentage of orders fulfilled on time and in full. High order fill rates are indicative of a successful operation, while low order fill rates suggest an inefficient process or lack of adequate inventory.   
  2.  Inventory Turnover: The number of times inventory is sold and replaced in a given period. A higher inventory turnover ratio indicates better management of resources and more efficient use of capital.   
  3.  Supply Chain Agility: The ability to respond quickly to changes in demand, supply, and other factors.   
  4. Forecast Accuracy and Bias: These are two important measures when it comes to supply chain management. Forecast accuracy measures how close your forecasts are to actual results, while forecast bias measures whether your forecasts are consistently above or below actual results. Both accuracy and bias should be monitored regularly in order to get an accurate representation of how well your team is predicting future demand for products or services.   
  5. Production Attainment: refers to the amount of product you are able to produce against the amount you plan on producing during any given period—for example, during a week, month or a quarter. This KPI tells you whether your production goals have been met—or exceeded!—during a specified time frame.   
  6.  Capacity Utilization: this is another important metric when it comes to measuring production efficiency within your supply chain. It looks at how much capacity (in terms of labor hours or machines) has been used relative to what was available for use during a specified period—typically a week, month or quarter. The higher this number climbs, the better off your business will be!   
  7.  Lead Time: The time it takes to receive a product after an order is placed.   
  8.  Supplier Delivery Performance: Delivery performance tracks how well suppliers are meeting their delivery commitments as well as whether they meet their quality standards when delivering products or services. High delivery performance indicates strong supplier relationships and adherence to service level agreements (SLAs), which can improve customer satisfaction levels significantly over time.   
  9.  Supplier Quality Performance (SQP): SQP monitors supplier compliance with regard to product quality standards such as meeting industry regulations or ensuring products do not contain any defects upon delivery. Evaluating SQP helps identify potential issues before they become major problems down the line, allowing companies with tight control over their supply chains an opportunity for corrective action before problems occur further down the line with customer complaints and returns.  
  10.  Freight Expenses Per Unit Shipped (FEPS): FEPS is measured by taking total freight costs incurred throughout a given period divided by total units shipped during that period—it essentially tells you how much each unit shipped costs in terms of freight expenses per unit shipped . Monitoring FEPS regularly allows companies with multiple distribution centers insight into different shipping methods than may offer better cost savings than others.   

Tracking and analyzing important, organization-specific KPIs is key to optimizing supply chain performance. Otherwise, it can be easy for organizations – especially in highly competitive industries – to get left behind as changes evolve rapidly! Analyzing these metrics regularly enables businesses to make informed decisions that maximize efficiency while driving them toward success. 

If you need help establishing and measuring your key performance indicators, contact us and schedule a discovery call with me: https://calendly.com/annamcgovern-pondviewconsulting/30-minute-discovery