What are the Top Key Performance Indicators (KPI’s) for Supply Chain Teams

Common Procurement Executive KPI’s question on ISM

With the Chief Procurement Officers (CPOs) our firm works with, here are some of the most common in a countdown format, and some that I would consider “future mindset thinking”…these are becoming of more significance as CPO’s look to identify how their procurement teams drive value for the enterprise…essentially moving from buyer-planner-expediter mindset, to strategic sourcing, to solution sourcing and innovation delivery mindset…

5. Supplier Delivery/Quality Performance (Direct Material-ASN’s to Dock Date, Indirect Procurement -Adherence to SLA Commitments) Supplier Aggregate PPM Performance…Direct Suppliers providing components and quality level
4. Spend under contract..duration to close contracts
3. Bottom Line Savings Impact – Cost Savings, or Avoidance, Rebates, Life Cycle Savings
2. Supplier Risk Scores…who is most at risk in the ecosystem, and what is the plan to solve the risk…
1. Supplier Enabled Innovation™ and Open Innovation Value Chain…how are procurement teams and suppliers providing Innovation to the enterprise for long term growth.