Key Performance Indicator (KPI)

A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company or supplier is achieving its strategic and operational objectives.

In the context of supply chain management, KPIs provide valuable insights into supplier performance, procurement efficiency, delivery reliability, cost management, and overall supply chain health.

KPIs can be used to track a variety of metrics, such as on-time delivery rates, order accuracy, lead times, supplier quality ratings, and cost savings. Each KPI is typically aligned with a specific business goal, helping companies monitor whether their suppliers are meeting contractual obligations and performance expectations.

Regularly tracking KPIs allows businesses to identify areas for improvement, mitigate risks, and make data-driven decisions that enhance supply chain efficiency.

For example, a company might set a KPI to ensure that 98% of orders from suppliers are delivered on time. By consistently monitoring this KPI, the company can identify underperforming suppliers and take corrective action to improve delivery reliability.

Relatico enables companies to define, track, and analyze KPIs related to supplier performance. Through the platform, procurement teams can generate reports and visualize KPI trends, ensuring that supplier relationships are aligned with business goals. This data-driven approach helps companies maintain high standards of performance across their supply chains and address any issues proactively.

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