Supply Chain Key Performance Indicators Definition

There are a number of key performance indicators (KPIs) that can be used to measure the performance of a supply chain. The most commonly used KPIs include:

1. On-time delivery: This KPI measures the percentage of orders that are delivered on time. It is a good indicator of the efficiency of the supply chain and its ability to meet customer expectations.

2. Order fulfillment rate: This KPI measures the percentage of orders that are fulfilled completely and accurately. A high fulfillment rate indicates that the supply chain is efficient and effective in meeting customer demand.

3. Inventory turnover: This KPI measures the number of times inventory is sold or used over a period of time. A high inventory turnover indicates that the supply chain is efficient in managing inventory levels and maximizing stock utilization.

4. Transportation cost per unit: This KPI measures the total transportation costs incurred divided by the number of units shipped. A low transportation cost per unit indicates that the supply chain is efficient in managing transportation costs.