What are the KPI's can be

used to measure supply

chain performance end to
end?

Discover the key performance indicators (KPIs) that play a crucial role in evaluating
the effectiveness of supply chain management from sourcing to logistics.

by Mohamed Yazar
Sourcing and Procurement
Cost Savings 💰

Track cost savings achieved through strategic sourcing and procurement practices.

Supplier Performance 🤝

Measure supplier performance based on delivery accuracy, quality, and service level agreements.

Supplier Diversity 🌍

Evaluate the inclusion and utilization of diverse suppliers to promote business sustainability and
social responsibility.
Production and Manufacturing
1 Production Cycle Time

Monitor the average time required to complete a production cycle, from raw materials to finished
goods.

2 Quality Defects

Quantify quality defects per production unit to ensure consistent product quality and minimize
rework.

3 Capacity Utilization

Assess the utilization rate of production resources to optimize capacity planning and increase
efficiency.
Warehousing and Inventory Management

Inventory Accuracy 📊 Picking Accuracy ✅ Cycle Time ⏰

Measure the accuracy of inventory Evaluate the accuracy of order Track the time it takes to receive,
records to prevent stockouts, picking to ensure timely and error- store, and ship products to optimize
overstocks, and improve order free order fulfillment. warehouse operations.
fulfillment.
Transportation and Logistics
1 On-Time Delivery

Measure the percentage of shipments

delivered on time to ensure prompt customer
Freight Cost per Unit 📦 2 satisfaction.
Calculate the average freight cost per unit to
optimize transportation expenses and cost-
efficiency. 3 Carbon Footprint

Evaluate sustainability efforts by measuring

transportation-related CO2 emissions and
implementing eco-friendly practices.
Closing Thoughts and Summary

By incorporating a comprehensive set of KPIs for supply chain management,

businesses can gain valuable insights into their end-to-end performance and drive
continuous improvement.