Key Performance Indicators

A KPI I have used to manage a global supply chain process successfully is the inventory turnover ratio. This KPI measures how efficiently a company uses its inventory to generate sales. The organization should decide which KPIs to use to successfully manage its global supply chain by considering the specific goals of the organization and the processes involved in the global supply chain. 

An organization’s goals may include reducing inventory costs, improving customer service, or increasing profits. The organization’s global supply chain process may involve the procurement of materials from suppliers, the production of products, and the distribution of products to customers. The organization should select KPIs that will help it achieve its specific goals. For example, the organization may want to track the time it takes to receive materials from suppliers or the number of products customers return.