In our most recent LinkedIn poll, we asked the opinion of supply chain professionals about how they would describe their organisation’s current priorities. We asked voters this question specifically in relation to what they would consider the most important Key Performance Indicators (KPIs) in their supply chains.
KPIs are the metrics that can help supply chain professionals check the level of effectiveness and efficiency in various supply chain processes. More than anything else, supply chain KPIs refer to the primary indicators that have an important impact on the overall health or problems of the supply chain.
We asked our LinkedIn audience which supply KPI was most important to them or their organisation: inventory turnover, on-time delivery, fill rate or other.
Supply chain KPIs: what we found
- Of those asked, the highest number, 67%, said that the most important supply chain KPI to their organisation was on-time delivery. On-time delivery ensures that businesses appear punctual and professional, while missed deadlines can lead to customers losing faith in the abilities of your business, eventually resulting in a loss of income.
- Next, the second highest percentage of voters, 22%, said that the most important supply chain KPI to their organisation was inventory turnover. Inventory turnover refers to average yearly inventory. It shows how often businesses have sold and replaced inventory during a given period. It allows businesses to frame their financial footsteps.
- The next most popular option, with 11% of votes, referred to fill rate. Fill rate denotes the extent to which customer demand has met customer expectation through instant stock availability without backorders or missed sales issues. It is useful for deciding how effectively and quickly your business is getting orders to customers.
- A fourth option, referring to other supply chain KPIs that we had not listed as most important received 0% of the overall votes.
B2BE’s years of experience allows our clients to grow more efficient in managing their supply chains, enabling greater effectiveness and profitability. To engage with B2BE and to offer us feedback on what matters most to you and your business, make sure to follow us on LinkedIn and across social media. You can also vote on our latest LinkedIn poll. If you’d like to discuss your supply chain strategy and how best to optimise your business processes, get in touch with us.