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Supply Chain KPIs
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Return Rate (Defects/Quality Issues)

Production Schedule Adherence

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Category:  
Operational

Measures the percentage of products returned due to defects or quality issues.

What it Measures ?

% of products returned due to issues.

Relevant StakeHolders 

Quality, Customer Support

Why it Matters ?

Reduces quality issues and improves product trust.

In-depth Use Case / Real-world Example

A company manufacturing smartphones tracks Return Rate (Defects/Quality Issues) by recording the percentage of returns caused by defects. For example, if 100 out of 5000 smartphones sold are returned due to defects, the return rate is 2%. This helps identify quality control issues and the effectiveness of manufacturing processes in preventing defects.

KPI Definition

Business Value

Movement Direction

Sample Formula

(Number of Defective Returns / Total Units Sold) * 100

Should Aim For
1
2
3
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Return Rate (Defects/Quality Issues)
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