What to track.
WHAT TO MEASURE ON THE SUPPLY SIDE
Supplier delivery on time and in full Lead time achieved against quoted Quality rejections Price variance Supplier responsiveness
WHY ON TIME AND IN FULL TOGETHER
Partial deliveries on time are still failures.
WHAT TO MEASURE INTERNALLY
Stock accuracy against physical count Stock turnover Items out of stock Obsolete and slow-moving stock Storage utilisation
WHY STOCK ACCURACY FIRST
Every other measure depends on it.
WHAT TO MEASURE ON THE CUSTOMER SIDE
Orders delivered on time and complete Order accuracy Damage rates Returns by cause Cost per delivery
WHAT TO MEASURE OVERALL
Total lead time from order to customer Total supply chain cost as a proportion of sales Cash tied up in stock and receivables
WHY CASH TIED UP
It is the largest hidden cost of supply chain decisions.
WHAT TO ESTABLISH
A small number of measures actually reviewed.
WHY SMALL
Extensive measurement that nobody examines achieves nothing.
WHAT TO COMPARE
Against previous periods Against targets Between suppliers and between locations
WHAT TO INVESTIGATE
Deterioration, and anything unexplained.
WHAT TO SHARE WITH SUPPLIERS
Their performance.
WHY
Most suppliers do not know how they are performing against your expectations.
WHAT TO REVIEW
Whether the measures are driving the right behaviour.
