Delivery improving KPIs

Here you will find essential KPIs that help you to improve your procurement processes. Using some of the KPIs, may help you establish strategies to improve the delivery as well as continuity of your supply.

1

On-time delivery (especially important for strategic supply)

Getting materials at the right time is especially important for strategic supply since late delivery might affect supply chain continuity, and early delivery results in higher inventory and operational costs.

How it’s measured:

It is measured by comparing the frequency of on-time deliveries to early and late deliveries.

Goal: lower the number of errors in an agreed-upon timeframe for deliveries.

On-time delivery helps to:

  • Maintain continuity.
  • Improve inventory management.
  • Save on costs.
  • Lower supply chain risks.

2

Purchase order accuracy – right quantity and right product

Purchase order accuracy indicates whether the suppliers are delivering the right quantity of the right goods.

Low purchase order accuracy might result in:

  • Extra inventory or operational costs.
  • Short quantity can interrupt continuity.

This is especially important in industries where the strategic materials expire quickly, example in food industry.

How it’s measured:
It’s measured by calculating the percentage of purchase orders with line item, pricing, supplier data, quantity or delivery date, and addressing errors over total number of purchase orders per period of time. Purchase order accuracy is usually different for different buying channels or categories.

Goal: improve purchase order accuracy.

Improving the purchase order accuracy helps to:

  • Save on costs.
  • Obtain a higher quality.

Want to check more Delivery KPIs?

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Also check out Cost-saving KPIs (download here) and Quality-improving KPIs (download here).

Download all KPIs in PDF file