20 Key Supply Chain Metrics and KPIs
Modern businesses have a supply chain as their backbone. It is a dynamic ecosystem that ensures consistent, smooth, and efficient delivery of goods or services from suppliers to clients or customers.
Commercial growth will be affected if your supply chain lacks structure and vision or is too fragmented. It is crucial to optimize and monitor relevant supply chain metrics with pinpoint accuracy.
Supply chain metrics can help you establish solid benchmarks for many essential processes and activities. You can make your business more efficient, intelligent, and ultimately more profitable by using the right KPIs.
This post will discuss essential supply chain KPIs. It will also provide essential insight into 20 key metrics that you need to track in order to improve logistics processes. With the help of modern KPI Software, we will show you how to maximize these supply chain performance metrics to create professional supply chains dashboards.
What are Supply Chain Metrics?
Specific parameters are established to define supply chain metrics. These parameters are used for quantifying and defining supply chains performance. These metrics can be used in inventory accuracy and turnover metrics as well as the inventory-to-sales ratio.
Supply chain performance metrics can be a valuable tool for monitoring the success, evolution, growth, development, and sustainability of your company’s supply and fulfillment efforts. You can identify inefficiencies in your supply chain by collecting, curating, and analyzing key supply chain metrics (SCM).
This will allow you to capitalize on your strengths, as well as establish goals that will assist your supply chain with its success. There are many KPI examples that you can choose from for your optimization and assessment. We have chosen a list that will allow you to identify bottlenecks and ensure sustainable growth.
Top 20 Supply Chain Metrics
We’ll be looking at the top 20 supply-chain metrics that will help your business and you achieve a bright future.
1. Cash-to-cash Cycle
This invaluable supply chain metric can help you determine the time it takes to convert your resources into cash flows. The cash-to-cash cycle KPI is a combination of three core ratios: the day’s inventory (DOI), days of payables(DOP), and days of receivables (DOR). This visualizes the time it takes for a business to pay cash to its suppliers and receive cash from customers. This invaluable supply chain metric will allow you to take the right steps to ensure your business can operate with less money.
Originally published on The Tech Trend