Job Code

KEY PERFORMANCE
Date Prepared March 1, 2021
INDICATIOR
Date Revised

Job Summary
Job Title Supply Chain Management

Job Grade TBC

Sector (1) Retail – Jeddah Food Company (JFC)

Division (2) Private Label and Import / Export

Department (3) Supply Chain / Warehouse

Section (4)

Unit (5) TBC

Reports to: (Job Title) Direct Reports: (Number)

TBC
Reporting
Relationships CEO (Chief Executive Officer) Indirect Reports: (Number)
TBC

Supply Chain Management KPIs

List of KPIs:

1. Cash-to-Cash Time Cycle

This priceless supply chain metric will help calculate the length of time required to transform the resources into
bonafide cash flows. Working with three core ratios - the days of inventory (DOI), the days of payables (DOP), and
the days of receivables (DOR) - the cash-to-cash time cycle KPI visualizes the period required between the
moments the company pays cash to the suppliers and the moment it receives cash from the customers. The
shorter the conversion cycle the better, and this invaluable supply chain metric will help to take the right
measures to ensure to run the business with less money tied up in operations.

2. Freight Bill Accuracy

Shipping and freighting the product items from supplier to warehouse or warehouse to the consumer is vital to
the success of the entire operation, and any issue or error can prove harmful with time and investments being
wasted. Billing accuracy is critical to profitability as well as customer satisfaction, so tracking this particular metric
will help to spot detrimental trends, improve the overall shipping accuracy, and ultimately, help the business
grow. Here is how freight bill accuracy is calculated:

(error-free freight bills / total freight bills) * 100

3. Perfect Order Rate

This particular insight is one of the most critical supply chain KPIs for businesses operating in a multitude of
sectors. The perfect order rate measures the success of the ability to deliver orders incident-free, which will
ultimately help to iron out issues such as inaccuracies, damages, delays, and inventory losses. The higher the
perfect order rate, the better, because this KPI has a direct impact on the customer retention and loyalty levels.

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 Job Code
KEY PERFORMANCE
Date Prepared March 1, 2021
INDICATIOR
Date Revised

4. Days Sales Outstanding (DSO)

This KPI measures how swiftly the company is to be able to collect or generate revenue from the customers.
Essentially, a low, or healthy, DSO number means that it takes a business fewer days to collect its accounts
receivable. A higher DSO level demonstrates that a company is selling its product to customers on credit and
taking longer to collect revenue in a tangible sense, which can stunt cash flow and minimize profits in the grand
scheme of things. By calculating this often, the revenue is collected much faster and more efficiently, which will
help boost the bottom line in the long run.

5. Inventory Turnover
One of the most superbly helpful supply chain KPI available today focuses on logistics KPIs and helps the company
understand the number of times its entire inventory has been sold over a certain time frame: an incredible
indicator of efficient production planning, process strategy, fulfilment abilities, and marketing and sales
management. By calculating the on-time shipping rate and comparing it to other competitors within the retail
industry, we will be able to create a clear management reporting practice, see where we stand, and take the
appropriate action to improve it over time - this will result in a boost in brand authority as well as an increased
bottom line - so this is important.

6. Gross Margin Return on Investment (GMROI)

Maintaining a consistently solid ROI is the bread and butter of ongoing e-commerce success. In supply chain
metrics, the GMROI offers a clear representation of the gross profit gained for every SAR (or $, £, €, ₺) of the
average investment made in the inventory: a calculation achieved by dividing the gross profit by the average
inventory investment. By tracking this KPI on a monthly basis, an insight is quickly gained into which items in the
inventory are poor performers and which are worth investing in more - gold dust in terms of business-based
information.

7. Warehousing Costs
The cost distribution and the management of the time and space of the inventory are critical in establishing a
healthy supply chain. It is important to measure this indicator and review it regularly in order to identify
opportunities and decrease unwanted costs. The management of the warehouse facility includes various costs
such as labour costs, warehouse rent, utility bills, equipment costs, material, and information-handling systems as
well as costs related to supplies, ordering, and storing the goods.

8. Supply Chain Costs

Costs are one of the supply chain key performance indicators that shows relevant costs that are associated with
supply chain management. These costs can include planning, managing teams, sourcing, delivering, etc., and it
will show how efficient parts of the company are. It's critical for the company to increase its profit and reducing
costs is one of the strategies that is often applied. That way, the company can identify if there is any space for
improvement without the need to increase sales in the process.

9. Supply Chain Costs vs. Sales

This indicator calculates the supply chain costs as a portion of sales and, in essence, it will give an indication of
how much the company is spending relative to a whole. By calculating such supply chain management metrics,
the company will be able to perform a healthy spend analysis and establish processes for potential savings. It is
critical to compare the data with the averages of other retail sectors.

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 Job Code
KEY PERFORMANCE
Date Prepared March 1, 2021
INDICATIOR
Date Revised

10. On-Time Shipping

This KPI will allow the company to set a benchmark shipping time relative to each product which, in turn, will
allow you to optimize your shipping and delivery processes, reducing turnover time, and boosting customer
satisfaction levels.

11. Delivery Time

Delivery time is a KPI for supply chain that focuses on improving service: it measures the amount of time needed
from the moment the order is shipped to the delivery on the customers’ store. The order needs to be correctly
prepared and the destination reached within a reasonable time frame. Otherwise, the general service may be
affected and the impression we leave on the customers: no one likes to wait for 9 months to get their delivered
goods.

12. Return Reason

The return reason supply chain metric offers an astute insight into the various motives causing the customers and
clients to return their orders. Presented in a digestible pie chart-style format with a key showcasing the primary
reasons for return, we will be able to assess the areas of weakness, analyse the quality of critical areas of the
supply chain process, and make the kind of improvements that will enhance not only the company’s reputation
but the overall level of service significantly.

13. Inventory to Sales Ratio

This is critical to track since inventory is one of the most important instruments in your supply chain. This metric
measures the amount of inventory for sale in comparison to the actual quantity that is sold, expressed as a ratio.
It will help you to adjust your stock in order to ensure high margins and tell you how well your company is dealing
with unexpected situations.

14. Inventory Days of Supply

This is particularly useful as it will give a fairly accurate calculation of the number of days it would take to run out
of stock if it wasn’t replenished. By tracking, analysing, and understanding this stream data on a regular basis, the
company will be able to prepare for, and avoid, any stock-based calamities in an emergency situation, saving our
reputation and cash flow in the process.

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