Key Performance Indicators - KPI

Benchmarking Success have a well established process for assisting with the development of KPI’s that are both relevant and effective at measuring business Supply Chain performance and progress towards strategic goals. The process links Strategy to Critical Success Factors (CSF's) for the business and then to the development of a set of KPI's that will both:

• measure progress towards the business strategy, and
• provide visibility for all levels of the business as to their contribution to the business strategy.

The KPI's can be represented as a table (see Level 1 Metrics) or by contribution to shareholder value.
Benchmarking Success can also provide a process for the effective deployment of the KPI's into the business. This includes guidance on the systems requirements for reporting, definitions, change management processes and performance management issues.
The COFS™ Diagnostic (Customer Order Fulfilment and Supply Chain) provides the ability to report on all critical KPI's for the supply chain. By further comparison against the database the performance of a supply chain can be positioned against similar supply chains. This approach is “customer driven” and assists with the targeting of improvement initiatives and the ongoing development of business strategy.
              

              

              

Benchmarking Success offers a wide range of Supply Chain and Logistics KPI's for purchase as listed below.

Supply Chain Output KPIs

Procurement & Supplier Management KPIs

• Number of suppliers managed / purchasing FTE
• Supplier in full
• Supplier on time
• Supplier rejections
• Average variable cost of placing order with supplier
• Cost of purchasing as % of gross sales
• Total procured spend as % total business costs
• Account payable days

Inventory Management & Forecasting

• Number of SKUs / Line Items
• Stock turn over - finished goods
• Stock turn over - raw materials
• Level of accuracy in Catalogue
• Stock available at customers first request
• Sales Forecasting Accuracy by SKU and volume
• Inventory obsolescence
• Inventory management cost as % of gross sales
• Inventory holding costs (IHC) as % of gross sales
• Interest charge for IHC
• Inventory holding costs (IHC) as % of inventory value
• Average inventory value
• Raw material days (if relevant)
• Work in progress days (if relevant)
• Finished goods days

Warehouse / DC KPIs

• Number of order processed in DC per day / FTE
• Time product availability for sales after receipted
• Order picking accuracy rate
• Service level - DIFOT (delivery in full on time)
• Inventory items incorrectly located
• Inventory items with incorrect stock balances
• Warehouse shrinkage
• Total warehouse time lost per person thru injury
• How many times is product handled
• Picking productivity by pickers and all staff
• Inventory accuracy rate at Item level
• Average lead time in DC
• Number of DC in network
• DC / Warehousing cost as % of gross sales or GP

Transport KPIs

• Number of customers order despatched per day / FTE
• How often are trucks fully loaded
• Amount of backloading
• On time deliveries
• Total Cost as a % of gross sales or GP

Customer Service KPIs

• Number of customers order processed per day / FTE
• Average lead time for all orders
• Order entry accuracy
• Delivered in full to customer - by case / unit
• Delivered in full to customer - by line / SKU
• Delivered in full to customer - by order
• Delivered on time to customer
• Time window that defines on time
• In full - on 1st request or negotiated or std?
• Percentage of customer claims
• Product returns
• Product Damage
• Invoice accuracy
• Customer Service Cost as a % of gross sales or GP
• Accounts receivable days
• Retrieval of signed PODs
• Stock Outs

Supply Chain KPIs

• Total logistics cost as % of gross sales or GP
• Cost / Order despatched
• Cost / Line despatched
• Cash Cycle
• Logistics Cost / Customer
• Cost as a % of COGS
• Gross Profit
• Cost as a % of Gross Profit

Production KPI's

• Production adherence to plan weekly

Supply Chain Management Input KPIs

Company Profile

• Sales

Supply Chain Management

• Existence of Business Plans
• Deployment of Business Plans
• Who reports to who in the Supply Chain
• Existence of Service Level Agreements
• Frequency of employee survey
• Performance of MRPii process
• Number of times product is handled
• What Cross functional KPIs
• Software used to support Supply Chain
• Electronic commerce used in what activities

Procurement and Supplier Management

• Procurement Policy Document
• Where does Procurement Mgr report
• Strategic Supplier Base Analysis
• Supplier Evaluation Program
• Number of joint improvement programs
• Rationalising Supplier Base
• Number of Sole Suppliers
• Length of contacts with Suppliers
• What KPIs to manage procurement
• No. & Value of Purchase Orders

Inventory Management

• Inventory Policy document
• Pareto analysis of Inventory
• Customer and Product profitability
• Stock turn performance standards
• How often lead times reviewed
• Who owns Finished Goods Inventory
• Who owns Sales Forecast

Distribution Centre / Warehouse Management

• Frequency of stock taking
• Random storage in DC
• Barcodes and scanners used in DC
• Picking documents printed in printing sequence
• Batch Picking
• Products ordered together stored together
• Timeslotting in DC
• KPIs used to manage DC

Transport Management

• How many transport contractors used

Customer Service

• Number of customers
• Customer Service Policy Document
• When is invoice created
• Customer Research into Service Performance
• Use customer research to develop SC strategies
• Customer payment terms
• Customer Service KPIs used