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Supply Chain KPIs
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Total Supply Chain Cost (%)

Production Schedule Adherence

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Category:  
Strategic

Measures the total cost of the supply chain as a percentage of revenue.

What it Measures ?

How much of sales revenue is spent on supply chain operations.

Relevant StakeHolders 

CFO, VP Supply Chain, Finance Controller

Why it Matters ?

Improves cost visibility and profitability.

In-depth Use Case / Real-world Example

A company manufacturing automotive components calculates Total Supply Chain Cost by dividing the total supply chain expenses (including procurement, warehousing, logistics, and inventory management) by the total revenue generated. For example, if the total supply chain costs amount to ₹20 crore and the revenue is ₹100 crore, the total supply chain cost percentage is 20%. Lowering this percentage improves overall profitability.

KPI Definition

Business Value

Movement Direction

Sample Formula

Total Supply Chain Cost / Total Revenue

Should Aim For
1
2
3
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Production Plan Adherence
Measures the extent to which the production schedule is followed and completed on time.
Order Picking Accuracy
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Production Downtime
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Return Rate (Defects/Quality Issues)
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