KPIs, or Key Performance Indicators, are used in supply chain management to measure the effectiveness of an organization’s logistics processes. By analyzing performance data related to costs, time, quality and efficiency, organizations can identify areas where they need to improve their operations in order to remain competitive. KPIs can take many forms, but typically include metrics such as inventory turnover, fill rate, shipping cost per unit and on-time delivery rate. With these measurements in place, businesses are able to track how well their supply chain operations meet customer demands and identify which processes could benefit from additional improvement.