Key performance Indicators (KPI's) are used to measure the performance of the organization or to evaluate the success of a particular activity in the organization. Success is measured in terms of achievement of the operational goals and some times strategic goals. KPI's are developed from the assistance of the benchmarking success and these are used to measure the performance of the supply chain and achieve the objectives of the organization. The process connects the strategy to Critical Success Factors (CSF's) for the business and then to the development of a set of KPI's.
Benchmarking success results in various Supply Chain and Logistics KPI's for supply chain like procurement and supplier management KPIs, inventory management and forecasting KPI's, warehouse KPIs, transport KPIs, customer service KPIs, production KPI's, etc., With the use of this KPI's a balanced score card is developed which measures the performance of the supply chain and the balanced score card uses these KPI's as metrics to measure the performance in terms of defects per million opportunities, inventory months of supply, claims percentage for freight costs, on time pickups, transit time and customer order promised cycle time.
The higher level managers with the help of Key performance indicators (KPIs) periodically monitor and measure the success rate of different activities carried out by organization, business units, and their division, departments and employees continuously and if there are any deviations from the actual results, they can immediately correct the process and this helps in achievement of over all objectives of the organization.
Benchmarking success results in various Supply Chain and Logistics KPI's for supply chain like procurement and supplier management KPIs, inventory management and forecasting KPI's, warehouse KPIs, transport KPIs, customer service KPIs, production KPI's, etc., With the use of this KPI's a balanced score card is developed which measures the performance of the supply chain and the balanced score card uses these KPI's as metrics to measure the performance in terms of defects per million opportunities, inventory months of supply, claims percentage for freight costs, on time pickups, transit time and customer order promised cycle time.
The higher level managers with the help of Key performance indicators (KPIs) periodically monitor and measure the success rate of different activities carried out by organization, business units, and their division, departments and employees continuously and if there are any deviations from the actual results, they can immediately correct the process and this helps in achievement of over all objectives of the organization.
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