Supply Chain Management Cheat Sheet

Supply Chain Management Cheat Sheet

SUPPLY CHAIN MANAGEMENT

🔗 BY SUPPLY CHAN CODED -------- 📋 CHEAT SHEET 📦

🔗 What Is Supply Chain Management?

Supply Chain Management (SCM) is the coordination of activities involved in sourcing, procurement, conversion, and logistics management.


  • Includes planning, sourcing, manufacturing, delivery, and returns
  • Manages flow of goods, information, and finances across networks
  • The goal is to optimize efficiency while minimizing costs and maximizing customer value

🎯 Why Is It Critical?

Effective supply chain management is vital because it:


  • Reduces operational costs by 15-20% on average
  • Improves customer satisfaction through reliable delivery
  • Increases competitive advantage through efficiency
  • Enables risk management and business continuity
  • Supports sustainability goals and compliance

📊 Overall Supply Chain KPIs (12 KPIs)

Essential metrics to track overall supply chain performance:


  • Perfect Order Rate - 95-99% target
  • Order Fill Rate - 98-99.5% target
  • Cash-to-Cash Cycle Time - 30-90 days
  • Supply Chain Cost as % of Revenue - 8-12%
  • Total Supply Chain Cost - Year-over-year reduction
  • Supply Chain ROI - 15-25% target
  • Customer Satisfaction Score - 85-95%
  • Days Sales Outstanding (DSO) - 30-45 days
  • Days Payable Outstanding (DPO) - 45-60 days
  • Supply Chain Cycle Time - Order to delivery
  • Cost per Order - Benchmark

    🔄 Demand Planning & Inventory KPIs (14 KPIs)

    • Forecast Accuracy - 85-95% target
    • Inventory Turnover Ratio - 6-12x annually
    • Days Inventory Outstanding (DIO) - 30-60 days
    • Inventory Carrying Cost % - 20-30% of inventory value
    • Stockout Rate - <2% target
    • Excess Inventory % - <5% target
    • Obsolete Inventory % - <3% target
    • Demand Variability - Coefficient of variation
    • Safety Stock Level - Service level optimization
    • Inventory Accuracy - 95-99% cycle count
    • Replenishment Frequency - Order cycles
    • Seasonal Index - Demand patterns
    • ABC Analysis Coverage - Item classification
    • Economic Order Quantity (EOQ) - Optimal order size

    Manufacturing & Production KPIs (10 KPIs)

    • Overall Equipment Effectiveness (OEE) - 85% target
    • Production Capacity Utilization - 80-90%
    • Manufacturing Cycle Time - Lead time reduction
    • First Pass Yield - Quality at first attempt
    • Setup/Changeover Time - SMED implementation
    • Planned vs Actual Production - Schedule adherence
    • Cost per Unit Produced - Manufacturing efficiency
    • Equipment Downtime % - Availability metric
    • Work-in-Process (WIP) Inventory - Flow optimization
    • Labor Productivity - Units per labor hour

    🚚 Logistics & Transportation KPIs (12 KPIs)

    • On-Time Delivery Rate - 95-98% target
    • Transportation Cost per Unit - Cost optimization
    • Freight Cost as % of Sales - 3-8% benchmark
    • Average Transit Time - Door-to-door delivery
    • Truck/Container Utilization - 85-95% capacity
    • Fuel Efficiency (MPG) - Fleet performance
    • Delivery Accuracy Rate - Correct items/quantities
    • Damage Rate - <0.5% of shipments
    • Claims Rate - Insurance/damage claims
    • Route Optimization % - Distance reduction
    • Average Cost per Mile - Transportation efficiency
    • Backhaul Percentage - Return trip utilization

    🤝 Supplier & Procurement KPIs (11 KPIs)

    • Supplier On-Time Delivery - 95-98% target
    • Supplier Quality Rating - Defect rates <1%
    • Cost Savings from Sourcing - Year-over-year
    • Purchase Price Variance (PPV) - Budget vs actual
    • Supplier Lead Time - Average procurement time
    • Supplier Diversity % - Minority/women-owned business
    • Contract Compliance Rate - Terms adherence
    • Purchase Order Cycle Time - Requisition to PO
    • Number of Active Suppliers - Rationalization metric
    • Supplier Financial Health Score - Risk assessment
    • Maverick Spending % - Off-contract purchases

    🛡️ Risk Management & Compliance KPIs (8 KPIs)

    • Supply Chain Risk Index - Weighted risk score
    • Supplier Risk Rating - Financial/operational stability
    • Business Continuity Score - Resilience measure
    • Insurance Claims Rate - Risk materialization
    • Compliance Audit Score - Regulatory adherence
    • Backup Supplier Availability - Contingency readiness
    • Geographic Risk Concentration - Diversification index
    • Mean Time to Recovery (MTTR) - Disruption response

    📈 Warehouse & Distribution KPIs (9 KPIs)

    • Warehouse Space Utilization - 85-90% target
    • Order Picking Accuracy - 99.5% target
    • Average Put-Away Time - Receiving efficiency
    • Orders Picked per Hour - Labor productivity
    • Dock Door Utilization - Loading/unloading efficiency
    • Warehouse Cost per Order - Operational cost
    • Inventory Shrinkage Rate - Loss/theft prevention
    • Cross-Dock Percentage - Direct distribution
    • Returns Processing Time - Reverse logistics

    🌱 Sustainability & ESG KPIs (8 KPIs)

    • Carbon Footprint (CO2e) - Scope 1, 2, 3 emissions
    • Sustainable Packaging % - Recyclable/biodegradable
    • Supplier ESG Compliance Rate - Ethical sourcing
    • Energy Efficiency Ratio - Energy per unit output
    • Waste Reduction % - Year-over-year improvement
    • Water Usage per Unit - Resource optimization
    • Circular Economy Index - Reuse/recycle rate
    • Green Transportation % - Alternative fuel usage

    Customer Service & Quality KPIs (8 KPIs)

    • Customer Order Cycle Time - Order to delivery
    • Product Quality Rate - Defect-free deliveries
    • Customer Complaint Rate - Issues per 1000 orders
    • Return Rate - Product returns %
    • Net Promoter Score (NPS) - Customer loyalty
    • Order Status Visibility - Real-time tracking
    • Customer Retention Rate - Repeat business
    • Resolution Time - Issue response/fix time

    💡 Technology & Innovation KPIs (8 KPIs)

    • Digital Maturity Index - Technology adoption rate
    • System Uptime % - IT infrastructure reliability
    • Data Accuracy Rate - Information quality
    • API Response Time - System integration speed
    • Automation Rate % - Process digitization
    • Cybersecurity Score - Risk mitigation
    • Innovation Pipeline Value - R&D investments
    • Digital ROI - Technology investment returns

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