From the course: Supply Chain and Operations Management Tips

Unlock this course with a free trial

Join today to access over 22,600 courses taught by industry experts.

Choose meaningful metrics and KPIs

Choose meaningful metrics and KPIs

From the course: Supply Chain and Operations Management Tips

Start my 1-month free trial Buy for my team

Choose meaningful metrics and KPIs

“

- You've probably heard the saying, what gets measured gets done. So let's talk about the metrics you're using to measure supply chain performance and I'll give you some examples that will help you select the right metrics for your own operations. We often refer to business metrics as key performance indicators, or KPIs. The goal in selecting KPIs is to come up with the smallest number of metrics that give you the best indication of how your business is really doing. The first way to think about these KPIs is to decide whether they should be quantitative or qualitative. Quantitative metrics are objective. Anything that you can measure with a tool, like a gauge or a computer, is a quantitative metric. And quantitative metrics are the best way to measure many of the operational processes in a supply chain. For example, the number of shipments you receive, the weight of each shipment, or the number of defects created by a process. Of course, financial metrics are quantitative, too…

Contents