Aligning KPIs for Sustainability and Connecting With the Author
Ever wonder what supply chain KPIs to implement? Below is a good framework to start with.
First Level
• Inventory accuracy
• Quote to cash cycle time
• Inventory turns or days on hand
• On-time delivery to external and internal customers
• Obsolete inventory: 3, 4, and >5 years without usage
• Supplier and part number lead-time; high to low and mean
• Open purchase order book and open purchase orders greater than customer demand
Second Level
• Safety stock total and by part number
• For planned stocked parts, zero on hand balances
• Supplier scorecard: incoming part PPM, on-time delivery to required and promise, and responsiveness
• List of no quote suppliers
• Supplier ...
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