Key supply chain performance indicators

Cash to Cash Cycle Time The number of days between paying for materials and getting paid for product. During this time cash is not available for other purposes.

Key supply chain performance indicators

These raw sets of values, which can be fed to systems that aggregate the data, are called indicators. There are two categories of measurements for KPIs.


Quantitative facts without distortion from personal feelings, prejudices, or interpretations presented with a specific value - objective- preferably numeric measured against a standard.

Qualitative values based on or influenced by personal feelings, tastes, or opinions and presented as any numeric or textual value that represents an interpretation of these elements. An activity can have four elements as: At a minimum it is required to have two elements: Something goes into the activity as an "input"; the "activity" transforms it by making a change to its "state"; and it produces an "output".

Key supply chain performance indicators

An activity can also have enabling "mechanisms" that are typically broken into "human" and "system". It can also be constrained in some fashion by a "control". And lastly, its actions can have a temporal construct of "time".

Input indicates the inputs required of an activity to produce an output. Output captures the outcome or results of an activity or group of activities.

Activity indicates the transformation produced by an activity some form of work. Mechanism is something that enables an activity to work - a performer - human or system. Time indicates a temporal element of an activity.

Identifying indicators of organization[ edit ] Performance indicators differ from business drivers and aims or goals. A school might consider the failure rate of its students as a key performance indicator which might help the school understand its position in the educational community, whereas a business might consider the percentage of income from returning customers as a potential KPI.

The key stages in identifying KPIs are: Having a pre-defined business process BP. Having requirements for the BPs. Investigating variances and tweaking processes or resources to achieve short-term goals. Key performance indicators KPIs are ways to periodically assess the performances of organizations, business units, and their division, departments and employees.

Accordingly, KPIs are most commonly defined in a way that is understandable, meaningful, and measurable.

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They are rarely defined in such a way such that their fulfillment would be hampered by factors seen as non-controllable by the organizations or individuals responsible. Such KPIs are usually ignored by organizations. This means the measure has a Specific purpose for the business, it is Measurable to really get a value of the KPI, the defined norms have to be Achievable, the improvement of a KPI has to be Relevant to the success of the organization, and finally it must be Time phased, which means the value or outcomes are shown for a predefined and relevant period.Key Performance Indicators for Responsible Sourcing A Beyond Monitoring Trends Report Cody Sisco, Manager, BSR Blythe Chorn, Associate, BSR October Key performance indicators (KPIs) are business metrics used by corporate executives and other managers to track and analyze factors deemed crucial to the success of an organization.

Effective KPIs focus on the business processes and functions that senior management sees as most important for measuring progress toward meeting strategic goals and performance targets. When focusing on measurable elements of a business, key performance indicators, or KPIs, are critical to evaluating efficiencies and effectiveness of a process, but they can be complex when involving a supply chain often composed of numerous organizations.

As key performance indicators form the basis for business performance management, executives need to be able to access their sales, crm, finance, hr or it performance indicators in real to date through a mobile cloud service, without human interference. is now

KPI's visualized according to best practices and accessible at any time with any Internet connected device: smart-phone, tablet.

performance by assigning “weighted” values to each key element (or KPI) performed by the supplier and calculating a weighted score that can be used to track the supplier’s performance.

Measuring indirect suppliers is more difficult due to a number of factors.

Key supply chain performance indicators

A big part of supply chain management is understanding how your company is performing. In this lesson, we'll discuss some key performance indicators for supply chain management, including what.

Supply Chain and Logistics KPIs: Some Basic Principles Explained