What are Supply Chain Management metrics? Identifying the optimal Supply Chain Management metrics can be challenging, especially when everyday tasks consume your time. To help you, we've assembled a list of examples to ignite your creativity.
Copy these examples into your preferred app, or you can also use Tability to keep yourself accountable.
Find Supply Chain Management metrics with AI While we have some examples available, it's likely that you'll have specific scenarios that aren't covered here. You can use our free AI metrics generator below to generate your own strategies.
Examples of Supply Chain Management metrics and KPIs 1. Percentage of Tools Provided The percentage of essential tools provided to staff compared to the total required tools
What good looks like for this metric: 95% or higher
Ideas to improve this metric Conduct an audit of required tools for each role Regularly update the inventory list for accuracy Establish a budget for tool procurement Ensure a streamlined procurement process Regularly review tool utilisation and needs 2. Staff Satisfaction with Tools Assessing how satisfied staff are with the tools provided through surveys or feedback
What good looks like for this metric: 4.5 out of 5
Ideas to improve this metric Collect regular feedback from staff Address common issues identified promptly Organise training sessions for effective tool use Update tools based on current technology Communicate openly about tool procurement processes 3. Time to Provide New Tools The amount of time taken from recognising the need to providing the tools to staff
What good looks like for this metric: Within 2 weeks
Ideas to improve this metric Define clear processes for tool requests Utilise technology to streamline requests Assign a dedicated team for processing requests Maintain good relationships with suppliers Increase budgeting for emergency tool provisions 4. Cost per Tool Provided Average cost spent per tool supplied to staff including acquisition and maintenance costs
What good looks like for this metric: Variable depending on industry
Ideas to improve this metric Negotiate bulk purchase deals with suppliers Regularly review supplier contracts Opt for cost-effective alternatives Prioritise tools with better longer-term ROI Minimise maintenance and repair costs effectively 5. Tool Utilisation Rate Proportion of time tools are actively used by staff compared to being idle
What good looks like for this metric: 75% and above
Ideas to improve this metric Encourage staff to report underused tools Redistribute tools where needed across departments Schedule regular checks ensuring tools' presence Provide training for better tool use Evaluate tools' effectiveness and suitability regularly
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1. Delivery Time Reduction Measures the reduction in delivery time from point of origin to destination, indicating efficiency improvements
What good looks like for this metric: 1-2 days reduction
Ideas to improve this metric Implement predictive analytics for route optimization Use real-time tracking and monitoring systems Enhance communication between stakeholders Adopt automated warehouse systems Regularly review and refine processes 2. Sustainability Index Evaluates the environmental, social, and economic sustainability of logistics operations
What good looks like for this metric: Score of 70-80 out of 100
Ideas to improve this metric Switch to electric or hybrid vehicles Promote sustainable sourcing and suppliers Implement waste reduction initiatives Conduct regular sustainability audits Educate stakeholders on sustainable practices 3. Cost Efficiency Compares the total logistics cost savings relative to the performance improvements achieved
What good looks like for this metric: 10-15% cost reduction
Ideas to improve this metric Negotiate better rates with carriers Invest in technology that reduces manual errors Optimize warehouse space and processes Scale operations to benefit from economies of scale Develop partnerships for cost-sharing 4. Customer Satisfaction Score Assesses customer satisfaction with logistics services, gauging overall experience
What good looks like for this metric: 80-90% satisfaction rate
Ideas to improve this metric Regular surveys and feedback collection Personalize customer interactions Resolve issues promptly and effectively Enhance transparency and visibility of logistics processes Continuously update customers on delivery status 5. Operational Efficiency Evaluates the ratio of output produced to the inputs used, reflecting process efficiency improvements
What good looks like for this metric: Increase of 15-20%
Ideas to improve this metric Streamline standard operating procedures Use data analytics for decision making Train employees in lean techniques Automate repetitive tasks Conduct regular performance evaluations
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1. Stock Turnover Ratio The number of times inventory is sold and replaced over a period, calculated as Cost of Goods Sold divided by Average Inventory
What good looks like for this metric: 5 to 10 times annually
Ideas to improve this metric Improve inventory management practices Reduce lead time for supply orders Increase sales through promotions Implement Just-In-Time inventory system Analyse and remove slow-moving products 2. Days Sales of Inventory (DSI) The average number of days it takes to sell inventory, calculated as 365 divided by Stock Turnover Ratio
What good looks like for this metric: 30 to 50 days
Ideas to improve this metric Conduct periodic inventory reviews Enhance demand forecasting accuracy Optimise pricing strategies Streamline supply chain processes Implement vendor-managed inventory 3. Gross Margin Return on Inventory Investment (GMROII) A measure of inventory profitability, calculated as Gross Margin divided by Average Inventory Cost
What good looks like for this metric: Above 2.0
Ideas to improve this metric Negotiate better terms with suppliers Identify and promote high-margin products Reduce inventory carrying costs Sell off obsolete inventory Utilise sales data for inventory optimization 4. Inventory to Sales Ratio The ratio of inventory held against sales made, reflecting inventory management efficiency
What good looks like for this metric: 0.12 to 0.20
Ideas to improve this metric Push sales for slow-moving items Improve demand planning Regularly adjust stock levels to sales patterns Implement an advanced inventory tracking system Diversify the product line to match consumer demand 5. Backorder Rate The percentage of orders that cannot be filled at the time of purchase, indicating potential stock deficiencies
What good looks like for this metric: 2% to 4%
Ideas to improve this metric Enhance communication with suppliers Better demand forecasting and planning Increase safety stock levels for high-demand products Monitor and adjust reorder points Invest in an integrated supply chain management system
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1. Inventory Turnover Ratio Measures how often inventory is sold and replaced over a period. Calculated by dividing cost of goods sold by average inventory
What good looks like for this metric: 2 to 4 times per year
Ideas to improve this metric Analyse inventory levels regularly Offer discounts on slow-moving products Optimize supply chain processes Increase product visibility through promotions Bundle products to increase sales 2. Sell-Through Rate The percentage of inventory sold compared to the amount of inventory received. Calculated by dividing units sold by the initial inventory received
What good looks like for this metric: 80% or higher
Ideas to improve this metric Enhance marketing efforts Rotate inventory displays regularly Improve sales staff training Utilize customer feedback for improvements Focus promotions on best-selling products 3. Gross Margin Return On Investment (GMROI) Measures the profit a company makes on its inventory investment. Calculated by dividing gross margin by average inventory cost
What good looks like for this metric: $2 or higher
Ideas to improve this metric Negotiate better terms with suppliers Improve pricing strategies Reduce inventory holding costs Focus on high-margin products Limit discounting on high-margin products 4. Days Sales Of Inventory (DSI) Indicates the average time in days that a company takes to turn its inventory into sales. Lower values are better
What good looks like for this metric: 30 to 60 days
Ideas to improve this metric Improve demand forecasting Implement automated inventory management systems Enhance supplier relationships Streamline supply chain processes Conduct regular inventory audits 5. Customer Feedback And Satisfaction Score Measure of customer satisfaction with the existing product line, usually through surveys or reviews
What good looks like for this metric: 4 out of 5 or higher
Ideas to improve this metric Actively solicit customer feedback Enhance product quality based on feedback Implement a customer loyalty program Improve customer service experiences Address any negative feedback promptly
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1. Conversion Rate The percentage of visitors who purchase a product after visiting the best sellers section
What good looks like for this metric: 2-5%
Ideas to improve this metric Enhance product descriptions Provide clear calls to action Use high-quality images Offer competitive pricing Simplify checkout process 2. Average Order Value The average amount spent each time a customer places an order from best sellers
What good looks like for this metric: $50-$100
Ideas to improve this metric Include product bundling discounts Highlight complimentary products Provide free shipping thresholds Promote limited-time offers Suggest upsells and cross-sells 3. Customer Engagement Rate The level of customer interaction with best seller listings, measured by clicks, shares, or comments
What good looks like for this metric: 20-30%
Ideas to improve this metric Utilise engaging social proof Incorporate interactive elements Use compelling ad copy Personalise content recommendations Ensure mobile-friendly design 4. Stock Turnover Ratio The rate at which inventory of best sellers is sold and replaced over a period of time
What good looks like for this metric: 5-7
Ideas to improve this metric Optimise inventory management Predict demand trends accurately Accelerate restocking processes Enhance supplier relationships Increase sales through on-site promotions 5. Customer Satisfaction Score A measure of how satisfied customers are with their shopping experience of best sellers
What good looks like for this metric: 70-85%
Ideas to improve this metric Gather regular feedback Enhance customer support Offer product quality guarantees Create user-friendly navigation Resolve complaints promptly
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Tracking your Supply Chain Management metrics Having a plan is one thing, sticking to it is another.
Having a good strategy is only half the effort. You'll increase significantly your chances of success if you commit to a weekly check-in process .
A tool like Tability can also help you by combining AI and goal-setting to keep you on track.
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