Measures the return on investment for supply chain activities by comparing savings or revenue generated against supply chain costs.

What it Measures ?

Return received from supply chain investments.

Relevant StakeHolders 

CFO, Strategy Head, SCM Director

In-depth Use Case / Real-world Example

A company manufacturing heavy machinery calculates Supply Chain ROI by evaluating the return generated from supply chain investments (like new technology, better logistics, or optimized inventory systems) versus the costs incurred. For example, if the company spends ₹10 crore on supply chain improvements and generates ₹15 crore in savings or additional revenue, the ROI would be 150%. This helps assess the effectiveness of supply chain investments.