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Essential for Business Performance! Determine your Business Supply Chain KPIs Right Now

Supply chain KPIs are very important. KPI itself stands for Key Performance Indicator. From the name itself, you can already tell that supply chain KPIs are used to analyze the performance and performance of the existing supply chain in your company.

This KPI becomes the main success indicator for the company to be able to find out the level of performance of the supply chain management system. The results of the analysis carried out will play an important role in measuring company performance. After that it is used to achieve strategic and predetermined goals.

With this KPI, the company will be able to get an evaluation of the company's performance that has been determined. The results of the evaluation will be used to assist the management level in making system improvements. It also determines the most effective way to achieve your company goals.

Supply Chain Performance Indicator
In order to determine supply chain KPIs, it is necessary to identify clear objectives. With accurate data, companies will be able to track the components in the supply chain. The following are various kinds of KPIs that are needed and important in supply chain analysis:

1. Inventory turnover
This cycle of readiness is an important supply chain KPI. This KPI is used to measure the quality of a company in moving its inventory. With this type of KPI, your company will easily understand supply chain efficiency. In addition, the company also knows the technical efficiency of its purchasing activities. This KPI is also used to calculate the number of requests for a company's product.

2. Availability level
Is the percentage of the number of products available in a certain period. For example, suppose your company has 50 types of products. Unfortunately there are only 35 available products. From this, it can be seen if the product availability is 35/50, which is only about 70%.

3. Lead time
KPI lead time is an index which can help your company measure the delivery of goods to customers. This KPI has an effect on customer satisfaction. If you feel that many customers have run away, it could be because the service is not satisfactory. One of the things that can be improved is the quality of delivery services. All customers and consumers love on-time delivery so it is important for you to make deliveries always on time.

4. Inventory accuracy
The KPI that is important for you to pay attention to next is inventory accuracy. The amount of inventory accuracy in this database must match. Inventory as well as the data in this database must match so that the accuracy of the inventory is correct.

You can imagine if the accuracy is not right, for example, there are still a lot of data in item A, but when checked in the inventory section, item A is still small and unable to meet customer requests. If this happens continuously it will make your business lose money.

5. Cycle time
The last KPI is cycle time. This supply chain KPI can help management and calculate accurately from the inventory payment process to product sales to consumers. From inventory to goods to consumers you can get the average cycle time. You can increase supply chain efficiency by making improvements at old points to make the process shorter.

The supply chain is very important for business. If the supply chain is not running effectively and efficiently it will cause problems for your business. From the assessment indicators above, you can find out what kind of performance your company's supply chain is. If you feel that it is less or even below standard you can improve your performance by using the right supply chain management software.

You can use solutions from SOLTIUS. We have a solution in the form of a supply chain management system software to make your business supply chain faster, more accurate and maximal. With the right software implementation you can easily define and visualize your business supply chain KPIs.

For more information, please click on the following link: https://www.soltius.co.id/solutions-by-products/supply-chain-management

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