SUPPLY CHAIN MANAGEMENT
🔗 BY SUPPLY CHAN CODED
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📋 CHEAT SHEET
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🔗 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
🔗 80 Comprehensive Supply Chain KPIs for Excellence 📊
Total KPIs Coverage: Overall (12) + Demand/Inventory (14) + Logistics (12) + Supplier/Procurement (11) + Manufacturing (10) + Risk Management (8) + Warehouse (9) + Sustainability (8) + Customer Service (8) + Technology (8) = 80 KPIs
These metrics provide complete visibility and control across your entire supply chain ecosystem.