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Supply Chain Metrics and KPIs

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Inventory Turnover

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Measures how often a company sells and replaces its stock of goods within a period. It indicates how well inventory is managed and demand forecasting accuracy.

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Order Fill Rate

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Measures the percentage of customer orders filled completely on the first shipment. It reflects how well the supply chain meets customer demand.

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Perfect Order Rate

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Measures the percentage of orders that are error-free. It evaluates the effectiveness of the supply chain in delivering products correctly and on time.

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Supply Chain Cycle Time

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Measures the total time taken for a product to move through the entire supply chain, from raw materials to the delivered product. It identifies bottlenecks and inefficiencies.

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Cash-to-Cash Cycle Time

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Measures the time between purchasing raw materials and receiving payment from customers for product sales. It evaluates how quickly a company converts investments into cash.

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On-time Delivery

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Measures the percentage of products delivered to customers on or before the promised delivery date. It indicates the reliability and efficiency of the logistics process.

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Freight Bill Accuracy

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Measures the accuracy of freight bills by comparing billed amounts against agreed rates and terms. Ensures appropriate freight spend and avoids overcharging.

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Gross Margin Return on Investment (GMROI)

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Measures the profit return on the amount of inventory investment made. It assesses the effectiveness of inventory in generating revenue.

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Days of Supply

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Measures how long current inventory will last given current demand levels. It anticipates stock-outs and helps plan inventory replenishment.

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Backorder Rate

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Measures the percentage of orders that cannot be filled at the time of customer request and are placed on backorder. It identifies stock availability issues.

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Return on Supply Chain Fixed Assets

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Measures the profitability derived from supply chain fixed assets, such as warehouses and transportation vehicles, indicating asset utilization efficiency.

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Supply Chain Finance Cost

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Measures the total cost associated with financing the supply chain, including the cost of capital and credit terms with suppliers, impacting overall expenditure.

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Demand Forecast Accuracy

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Measures the precision of the demand forecasts by comparing predicted sales to actual sales, revealing planning effectiveness.

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Supply Chain Responsiveness

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Measures the agility of the supply chain in responding to market changes or disruptions, reflecting its adaptability and resilience.

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Customer Order Cycle Time

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Measures the time from when a customer order is placed until the product is delivered, reflecting supply chain speed and customer service level.

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Cost of Quality

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Measures the costs associated with ensuring quality products and services, including prevention, appraisal, and failure costs, affecting profitability and customer satisfaction.

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Capacity Utilization

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Measures the extent to which a company uses its installed productive capacity. It indicates the efficiency and scalability of operations.

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Freight Cost Per Unit

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Calculates the cost of shipping per unit of product, enabling analysis of freight cost efficiency and cost control in logistics.

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Lead Time

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Measures the time taken from placing an order with a supplier to the receipt of the goods. It impacts stock levels and customer satisfaction.

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Rate of Return

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Measures the rate at which customers return products, influencing supply chain costs, inventory management, and product quality control.

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Sell-Through Rate

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Measures the percentage of inventory sold within a specific period, highlighting demand levels and inventory management performance.

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Average Inventory

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Measures the average quantity of inventory held over a specific period, indicating how well inventory is being managed against sales performance.

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Stockout Rate

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Measures the frequency at which inventory for a particular item is exhausted, affecting customer satisfaction and sales.

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Net Promoter Score (NPS)

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Gauges customer loyalty and satisfaction by measuring the likelihood of customers to recommend a company's products or services.

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Supply Chain Management Cost

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Measures the total costs involved in managing the supply chain, including procurement, production, and logistics, affecting overall profitability.

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Supplier Lead Time

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Measures the time taken by suppliers to deliver goods after an order is placed, impacting inventory planning and production schedules.

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Warehouse Capacity Utilization

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Measures how efficiently the available warehouse space is used, affecting storage costs and inventory management.

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Cost Per Order

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Measures the average cost involved in processing a customer order, including labor, materials, and overhead, indicating efficiency and cost control in order fulfillment.

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Safety Stock Levels

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Measures the amount of extra inventory kept on hand to prevent stockouts in the face of demand variability and supply chain disruptions.

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Service Level

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Measures the percentage of order demand that is met without stockouts or backorders, reflecting supply chain reliability.

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Out of Stock Rate

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Measures the percentage of times customers face out-of-stock situations, signaling potential sales loss and customer service issues.

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Throughput

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Measures the rate at which a company's system produces goods or services, showing the efficacy and productivity of the production process.

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Manufacturing Cycle Efficiency (MCE)

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Measures the proportion of production cycle time that is spent on value-added activities, highlighting process efficiency and waste reduction.

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Total Supply Chain Management Cost

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Measures the combined costs of all activities and processes across the supply chain, from sourcing to delivery to the customer, impacting the company's bottom line.

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Supplier On-time Performance

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Measures the percentage of times suppliers deliver goods or services on or before the agreed time, indicating supplier reliability and impact on production schedules.

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Supply Chain Flexibility

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Measures the agility of the supply chain in adapting to changes in volume, delivery, and the mix of products or services, affecting customer responsiveness and competitiveness.

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Customer Satisfaction Index

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Measures how products or services meet or exceed customer expectations, indicating the quality of customer service and product performance.

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Material Acquisition Cost

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Measures the total expenses involved in procuring raw materials necessary for production, including costs related to purchasing, handling, and transportation.

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