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Supply Chain KPIs
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Revenue Impact of Supply Chain

Production Schedule Adherence

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Category:  
Strategic

Measures the direct impact of supply chain performance on revenue generation.

What it Measures ?

Revenue gained due to supply chain improvements.

Relevant StakeHolders 

CFO, Strategy Head, VP Supply Chain

Why it Matters ?

Measures ROI of supply chain initiatives.

In-depth Use Case / Real-world Example

A company manufacturing packaged food tracks the Revenue Impact of Supply Chain by calculating how supply chain efficiency (such as on-time delivery and quality control) translates into sales growth. For example, if improving delivery times boosts customer satisfaction and results in a 10% increase in sales, this KPI quantifies the connection between supply chain performance and revenue.

KPI Definition

Business Value

Movement Direction

Sample Formula

Revenue Increase Attributed to Supply Chain Improvements

Should Aim For
1
2
3
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Measures the costs associated with defective products that need to be scrapped or reworked.
Labor Utilization Efficiency
Measures the efficiency of labor usage by comparing the actual output to the labor hours used.
Order Cycle Time
Measures the total time taken from receiving a customer order to delivery.
Line Stoppage Incidents
Measures the number of times production is halted due to machinery failures, material shortages, or other issues.
Transit Time Efficiency
Measures the efficiency of the transportation process by comparing the planned and actual transit times.
Outbound Freight Lead Time
Measures the time taken to ship products from the company’s warehouse to customers.
Inbound Freight Lead Time
Measures the time taken to receive goods from suppliers after shipment.
Production Plan Adherence
Measures the extent to which the production schedule is followed and completed on time.
Order Picking Accuracy
Measures the percentage of items picked correctly for customer orders.
Production Downtime
Measures the total time production is halted due to machine failure, maintenance, or other reasons.
First Pass Yield (FPY)
Measures the percentage of products that are manufactured correctly the first time, without defects.
Pick-and-Pack Cycle Time
Measures the time it takes to pick and pack an order from the warehouse.
Work-in-Progress (WIP) Inventory Trends
Measures the trends in inventory that is in the production process but not yet completed.
Return Rate (Defects/Quality Issues)
Measures the percentage of products returned due to defects or quality issues.
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