Time for the next round of KPIs! We hope you find them interesting while reading.
4. Cash-to-cash time
The cash-to-cash (C2C) cycle, also called cash conversion, is a measurement of time between the payment of suppliers and the receipt of payments from customers. This period should be kept as short as possible to avoid tying up the company’s financial resources.
5. Supply chain cycle time
Supply chain cycle time is a comprehensive measurement of how long the processing of a sales order would take if all stocks were zero at the time the order was placed. In other words, it is the sum of the longest possible lead times for each phase of the supply chain cycle,
making it an excellent indicator of overall supply chain efficiency. A shorter cycle means that the process is flexible, agile and responsive to changes in its environment. Tracking the supply chain cycle time exposes existing or potential problems and allows you to make the appropriate corrections.
6. Fill rate
The fill rate, also called demand satisfaction rate, is the level of customer demand that can be met by available inventory levels with no supply backlogs or lost sales. It is important as a metric because it indicates the additional profit a company could make with improved inventory performance.
One way to improve inventory performance is to gain access to inventory data. The better you and your sales team are informed about available inventory, the better you can fulfil your orders accurately, completely, and on time, thereby increasing customer satisfaction.
Yes, you’ve counted right… There’s one KPI missing. Shall we meet again tomorrow? We look forward to seeing you!
Photo by Hanes Egler / Unsplash
« Zurück zur Übersicht