What are the key performance indicators that helps the improvement of a company's supply chain?

1. Time to market

2. Cash to cash time

3. ROI & ROA

Basic answer of this question are depend on 4 basic management measurement indicator:

1.Time delivery: How long they can deliver the product or part compare with similar product, place and similar company

2.Cost : How much does it cost per unit compare with other product, place and similar company

3.Quality : How good product or service quality they can deliver to customer 

4.Flexible : Curent condition business will change rapidly, impacted to how flexible our service.

1. Product/Order Fill Rate.

2. Item turn over.

3. Less Lead time.

4. Customer Service.

5. Cash to Cash Cycle.

Supply Chain Management (SCM) expectations vary from organization to organization. So the KPI for each organization may vary according to their objectives. There are certain KPIs which are applicable in general :

Supplier Management : Managing direct tier, lower tiers and ensure suppliers are financially, technically and quality wise apt to deliver the specified products. This include supplier payment and relationship management.

On Time Delivery ( OTIF – On time in full ) and accuracy. This is the key KPI of customer satisfaction.

Supplier selection : Whether the supplier can meet or exceed the specification expectation of organizational purchase.

Volumes of order fulfillment : Howmany purchase orders are completed, sales orders are fulfilled etc..

Supply Chain Cost : Cost reduction through process improvement and eliminate unnecessary wastes from the system

Right price of purchase : This is important to compete in the market

Choose of right quality : Important for branding, good will, reputation etc..

Right method of transport : Important to meet forecast customer demand and avoid product obsolete

Inventory turnover  : This is another term to measure the performance of supply chain, but inventory turnover depends on sales forecast, holding cost, transportation cost, marketing strategy and promotions.

• Supply chain and logistics costs.
• Cash to cash cycle time.
• Delivery in full and on time (DIFOT) as actually delivered to your customers.
• Probability of a perfect order in your Supply Chain. This highlights key improvement opportunities.
• Stock turn over.

Most important sector to be focused for the improvement in supply chain will be

• Total cost of goods sold
• Supply chain cost per unit sold
• Labor utilization
• Warehousing and transportation costs
• Enterprise software performance

Apart from that other key elements will be

• • Asset utilization rate
  • Defect and acceptance rates
  • Queues and wait times
  • Stock levels and safety stock

To make it most effectively some of secondary key performance such as

·         Call volume and queue

·         First contact resolutions

·         Item fill rate

·         Perfect order

·         Delivered full / on time.

1. On time delivery

2. Quality of Product / Service

3. After sales support

4. Cash to Cash cycle

5. Order Fill Rate

Identify the costs, check reponse times, determine the realibility of the resources, determine the flexibility of the resources, focus on asset efficiency. 

reoder time, lead time, buffer stock, inventory management

Selection of correct suppliers

Suppliers capabilites to full the delivery on time

Agreeing Favorable payment terms to maintain project cash flow

Getting approve alternative products in order to speed up the project competion date and to lower material cost.

1-Cash to cash cycle time

2-Suppliers quality,prices and serives

3-Quality of Production and material planning 

4-Reduction cost without affect on quality of products

5-Good balance sheets (Inventory)

6-good Logistics and transportation planning

7-Good forecasting

8-Reduce the big losses in opration and increae the OEE

9-Good customer services