Measuring supply chain performance is essential for identifying areas of improvement and tracking progress. Key performance indicators (KPIs) can provide valuable insights into supply chain efficiency:
Order Fulfillment Rate: This KPI measures the percentage of orders delivered on time and in full. Inventory Turnover: This metric indicates how quickly inventory is sold and replaced over a specific period. Lead Time: Lead time measures the time taken from placing an order to receiving the goods. Supply Chain Cost: This KPI includes all costs associated with the supply chain, such as transportation, warehousing, and labor. Supplier Performance: This metric evaluates the reliability and quality of suppliers based on criteria such as on-time delivery and defect rates.