What are key performance indicators (KPIs) in a supply chain?

Key performance indicators (KPIs) in a supply chain are defined as measurable values that demonstrate how effectively a company is achieving its key supply chain objectives. They serve as essential tools for assessing the performance of various supply chain processes and help organizations monitor progress toward strategic goals.

KPIs can encompass various aspects of the supply chain, including efficiency, quality, customer satisfaction, and cost-effectiveness. By analyzing these metrics, businesses can make informed decisions to optimize their operations, identify areas for improvement, and enhance overall supply chain performance. The focus on measurement allows companies to set benchmarks and track their progress over time, aligning their efforts with broader business objectives.

This understanding of KPIs is vital for supply chain analysts and professionals for effective management and continuous improvement within the supply chain domain, ensuring that the organization remains competitive and responsive to market demands.