At the initial startup phase, your supply chain gets ignored because you must look after so many things simultaneously. Early supporters will lose faith in your company soon if your deliveries are infrequent. In this Business2Community article, Jake Rheude discusses KPIs that a startup can use to measure supply chain performance.
Supply Chain KPIs
It is not as fancy as planning your marketing strategy but measuring supply chain’s performance is crucial for long-term success. It also might not be your priority but it is the framework based on which the customers evaluate your brand. Following are the 3 KPIs to understand how your supply chain is performing its daily operations:
- OTIF: Be it a startup or a market pioneer, the supply chain must answer one question perfectly—‘did you nail this delivery?’ So, the on time and in full KPI asks 4 questions. Was the product delivery on-time? Were there any items that you missed delivering? Did the customer receive a compromised or broken package? Did the delivered product not meet the customer’s customization requirements? You must focus on giving your customers superior services from day one and that is possible if you control the performance.
Turns:Ollie’s COO Matt Cantatore that you cannot have too much or too fewer items in your inventory when you have just started out. It is a safer bait to have less inventory in the initial days of your business. Excess items block the money that you could have invested somewhere else. Also, more inventory items can cause inventory efficiency to decrease if you cannot sell them.
- Workforce Turnover: Workforce is the heart of your supply chain so ensure that they are satisfied with their pay, perks, and benefits. Compare your workforce turnover at the supply chain department with the industry frequently.
To view the original article in full, click on the following link: https://www.business2community.com/startups/what-your-startup-needs-to-know-about-supply-chain-kpis-02166912