KPI

KPI
Name

KPI01 Annual
Growth Rate

Unit of
Purpose
Measure
%

Measure

Definition

Time
frame

Example
Manufacturer

Where to measure
Retailer
Joint

The purpose is to
%growth rate
record the organic
growth rate and allow
correlations to be
made between growth
and other metrics.

((Sales in the most

recent 12 months sales in the previous
12 months) / sales in
the previous 12
months) * 100.
Comparison should
be on a like for like
basis.

The most
recent 12
months
compared to
the 12 months
before that

Sales in most recent Sales from the

12 months = $12.0m. manufacturer to
Sales in pervious 12 customers
months = $11.2m.
Growth = ((12.0 11.2)/11.2) * 100 =
7.14%.

Retail sales
comparing the
sales from the
same group of
stores over
the two 12
month periods

Retail sales
comparing the
sales from the
same group of
stores over the
two 12 month
periods

KPI02 Supplier
%
Service Level
/ Unit Fill
Rate to
Customer
Distribution
Centre

To measure the extent

to which the
units/items being
ordered are being
delivered complete as
measured by the
recipient. This is a
case/trading
unit/volume measure.
Over deliveries and
back orders should
not be included in this
measure.

% of cases /
trading
units /
volume
delivered as
ordered

For all cases/trading

units/volume ordered,
the % delivered as
ordered (a case fill
measure)

Use the data

systems
available from
the enterprise.
Report the
average of
these data
points over the
most recent 12month period.

A fill measure (eg. If

50 cases of item "A"
and 75 cases of item
"B" were ordered but
50 cases of items "A"
and 60 cases of item
"B" were delivered,
the service level
would be 88%
(110/125))

Manufacturer to
retailer's
distribution
centre (leave
blank if
operating
direct-to-store
delivery)

Manufacturer
to retailer's
distribution
centre (leave
blank if
operating
direct-to-store
delivery)

Manufacturer
to retailer's
distribution
centre (leave
blank if
operating
direct-to-store
delivery)

KPI03 Store Service %

Level / Unit
Fill Rate

To measure the extent

to which the
units/items being
ordered are being
delivered to stores
complete as
measured by the
recipient. This is a
case/trading
unit/volume measure.
Over deliveries and
back orders should
not be included in this
measure.

% of cases /
trading
units /
volume
delivered as
ordered

For all cases/trading

units/volume ordered,
the % delivered as
ordered (a case fill
measure)

Use the data

systems
available from
the enterprise.
Report the
average of
these data
points over the
most recent 12month period.

A fill measure (eg. If

50 cases of item "A"
and 75 cases of item
"B" were ordered but
50 cases of items "A"
and 60 cases of item
"B" were delivered,
the service level
would be 88%
(110/125))

Retailer's
distribution
centre to stores
(or
manufacturer to
retail stores if
operating
direct-to-store
delivery)

Retailer's
distribution
centre to
stores (or
manufacturer
to retail stores
if operating
direct-to-store
delivery)

Retailer's
distribution
centre to
stores (or
manufacturer
to retail stores
if operating
direct-to-store
delivery)

KPI04 On-Time
Delivery

To measure order
processing and
distribution
performance

% of orders Number of orders

delivered on delivered on time
time
divided by the total
number of orders. "On
time" is based on the
recipient's agreed
delivery window.

Use the data

1700 orders placed.
systems
1560 delivered on
available from time. KPI = 91.8%
the entreprise.
Report the
average of
these data
points over the
most recent 12month period.

Manufacturer to Customer
customer
distribution
distribution
centre to store
centre.(For
direct-to-store
delivery,
manufacturer to
store)

Manufacturer
to customer
distribution
centre. (For
direct-to-store
delivery,
manufacturer
to store)

KPI05 Raw
Materials
Inventory
Cover

Days

Measure inventory in
the supply chain

Days

The definition calls for

inventory to be
expressed in days of
cover. Value of raw
materials inventory
divided by the
average value of daily
usage (calculated
based on past 12
months history) of
these items. Valuation
of inventory and
usage should be on a
consistent basis.

Use the data

systems
available from
the enterprise.
Report the
average of
these data
points over the
most recent 12
month period.

Inventory =
$1,000,000 Average
daily purchase value =
$75,000 Inventory =
13.3 days
(1,000,000/75,000)

Manufacturer's Not applicable Not applicable

raw materials
and packaging
inventory

KPI06 Manufacturer Days

/ Supplier's
Finished
Goods
Inventory
Cover

Measure inventory in
the supply chain

Days

The definition calls for

inventory to be
expressed in days of
cover. Value of
finished goods
inventory divided by
the average value of
daily sales of these
items, averaged over
the last 12 months.
Valuation of inventory
and sales should be
on a consistent basis.

Use the data

systems
available from
the enterprise.
Report the
average of
these data
points over the
most recent 12
month period.

Inventory =
$1,000,000 Average
daily sales value =
$75,000 Inventory =
13.3 days
(1,000,000/75,000)

Manufacturer /
Supplier's
finished goods
inventory

Not applicable Manufacturer /

Supplier's
finished goods
inventory

KPI07 Retail
Distribution
Centre
Inventory
Cover

Measure inventory in
the supply chain

Days

The definition calls for

inventory to be
expressed in days of
cover. Value of
finished goods
inventory divided by
the average value of
daily sales of these
items, averaged over
the last 12 months.
Valuation of inventory
and sales should be
on a consistent basis.

Use the data

systems
available from
the enterprise.
Report the
average of
these data
points over the
most recent 12
month period.

Inventory =
$1,000,000 Average
daily sales value =
$75,000 Inventory =
13.3 days
(1,000,000/75,000)

Average days
of inventory of
the
manufacturer's
products in the
retailer's
distribution
centre(s)

Average days
of inventory in
the retailer's
distribution
centre(s)

Days

Key Performance Indicators

Average days
of inventory of
the
manufacturer's
products in the
retailer's
distribution
centre(s)

KPI
#

KPI
Name

KPI08 Retail Store

Inventory
Cover

Unit of
Purpose
Measure

Measure

Days

Days

Measure inventory in
the supply chain

Definition

Time
frame

Example

The definition calls for

inventory to be
measured in days of
cover. Value of
inventory held in the
retailer's dstores
divided by the
average value of daily
sales of these items
from stores, averaged
over the last 12
months. Valuation of
inventory and sales
from stores should be
on a consistent basis.

Use the data

available from
the enterprise.
Report the
average of
these data
points over the
most recent 12
month period.

Inventory =
$1,000,000 Average
daily sales value =
$75,000 Inventory =
13.3 days
(1,000,000/75,000)

Average over
OOS should be
most recent 12- measured as
month period.
frequently as
capabilities allow
(eg.audits, preferably
at peak times, market
measurement data,
statistical analysis).
The target should be
to establish a
systematic approach
to daily measurement.
However, the key is to
measure OOS based
on whatever capability
exists (daily, weekly,
monthly). 6 items
missing vs 100 items
expected = 6%

Manufacturer

Where to measure
Retailer
Joint

Manufacturer/S
upplier's
estimate of the
average level of
inventory of the
supplier's
products held in
retail stores

Average days
of inventory in
the retailer's
stores

Average days
of inventory of
the supplier's
products held
in the retailer's
stores

On-shelf or
point-of-sale.
This KPI should
be reported by
Manufacturers/
Suppliers
based on their
knowledge of
their products'
in-stock
position.

On-shelf or
point-of-sale
as measured
by the retailer.

On-shelf or
point-of-sale
as measured
by the retailer.

Retailer
distribution
centre to
Store

Manufacturer
distribution
centre to
customer

KPI09 On-Shelf /
%
Point-of-Sale
Out-of-Stocks

Measure the extent to % of items

which the product is
out of stock
available when the
consumer wants to
buy it. We will
measure this KPI at
the point-of-sale only,
as an out-of-stock
measure

Average number of
items not available
divided by the total
number of items

KPI10 Lead Time

Hours

Measure supply chain Hours

responsiveness. The
scope of this measure
is from order
generation to delivery.
This KPI should be a
market average or
"normal" lead time
measure

The number of hours Average over

it takes from order
most recent 12generation to order
month period.
receipt

Orders sent at noon.

Picked and shipped at
17.00 the next day
plus 5 hour transit
time. Cycle time = 34
hours.

Manufacturer
distribution
centre to
customer

KPI11 Distribution
Costs (% of
sales value)

Measure supply chain % of sales

cost. The scope of
value
this KPI is the supply
chain costs with order
processing
(manufacturers/suppli
ers only),
warehousing and
trasportation cost.

The total cost for

distribution of
products (finished
goods, warehousing,
people and
equipment, transport
from distribution
centre to receiving
dock, unloading)
divided by the value
of total sales of these

Average over
the most recent
12-month
period

Distribution costs =
$75,000 Sales =
$1,000,000
Distribution costs =
7.5% of sales

Distribution
Retailer
Manufacturer /
costs =
distribution
Supplier
$75,000 Sales centre to store through to
= $1,000,000
retail store
Distribution
costs = 7.5% of
sales

KPI12 Distribution
cost /
Costs (local case
currency unit
per case)

Measure supply chain

cost. The scope of
this KPI is the supply
chain costs with order
processing
(manufacturers/suppli
ers only),
warehousing and
trasportation cost.
This KPI can only be
used for internal
benchmarking where
consistent currencies
are used. It cannot be
used for external
benchmarking where
different currencies
may be used. local
currency unit per case

The total
cost for
distribution
of products
(finished
goods,
warehousing
, people and
equipment,
transport
from DC to
receiving
dock,
unloading)
divided by
the number
of physical
cases
delivered

The total cost for

distribution of
products (finished
goods, warehousing,
people and
equipment, transport
from DC to receiving
dock, unloading)
divided by the number
of physical cases

Average over
the most recent
12-month
period

Distribution costs =
$75,000 Sales =
31,250 physical cases
Distribution costs =
$2.40 per case (enter
KPI as 2.4)

Manufacturer/S Retailer
Manufacturer/
upplier to
distribution
Supplier
customer
centre to store through to
distribution
retail store
centre. (For
direct-to-store
delivery,
manufacturer to
store)

KPI13 Invoice
Accuracy Master Data

Measure the
alignment of neutral
master data between
trading partners. % of
invoices with
neutral/master data
correct

% of invoices
with neutral /
master data
correct

The number of
Average over
invoices with all
most recent 12quantities and GTINs month period.
correct divided by the
number of invoices.

Number of invoices = Manufacturer to Supplier to

20 Number with errors customer
retailer
in master data = 16
KPI = 16/20 = 80%

Supplier to
customer

KPI14 Invoice
Accuracy

Measure the
alignment of all data
included on the
invoices between
trading partners.

% of invoices The number of

Average over
correct
invoices totally correct most recent 12divided by the total
month period.
number of invoices.

Number of invoices = Manufacturer to Supplier to

20 Number of invoices customer
retailer
with errors = 10 KPI =
10/20 = 50%

Supplier to
customer

Number of invoices = Manufacturer /

100 Number filled
supplier to
perfectly = 62 KPI =
customer
62%

Manufactuer /
Supplier to
customer

KPI15 Perfect Order %

Rate

This is an optional KPI %

that measures the
combination of orders
that are touchless,
complete, on time,
invoiced correctly and
damage free.

The number of orders Average over

with no error, filled
most recent 12correctly for every
month period.
line, on time and
invoiced correctly
divided by the total
number of orders

Key Performance Indicators

Supplier to
retailer

IM
#

IM
Name

Unit of
Purpose
Measure

IM01

% of consumer units allocated

GTIN

IM02

% of cases / cartons / inners

allocated a GTIN

IM03

Definition

Time
frame

To measure implementation level % of all consumer items

of GTIN at consumer unit level

What % of consumer units sold /

received are allocated a Global Trade
Identification Number (GTIN)?

At present

To measure the extent to which % of cases / cartons / inners

cases/cartons/inners have been
allocated a GTIN so that it may
be used to identify the iemt in the
supply chain

What % of cases/cartons/inners sold /

received are allocated a Global Trade
Identification Number (GTIN)?

At present

% of pallets/unit loads labeled

with SSCC

To measure the extent to which % of pallets / unit loads

pallets/unit loads are lablled with
Serial Shipment Containier
Codes so that they can be
uniquely identified throughout the
supply chain

What % of pallets/unit loads

sold/received are labeled with a Serial
Shipping Container Code (SSCC)?

At present

IM04

% of item exceptions to GTIN

allocation guidelines

To measure the extent to which

items are failing to comply with
the GTIN allocation guidelines

% of item exceptions

What % of items sold / recieved have

During the last
exceptions to the Global Trade
month
Identification Number (GTIN) allocation
guidelines?

IM05

% of shipping or receiving
locations that have been
allocated a GLN

To measure the extent to which

GLNs have been allocated to
shipping/receiving locations

% of shipping / receiving lcations What % of your shipping/receiving

locations have been allocated a Global
Location Number (GLN)?

IM06

% of orders transacted via EDI

or XML

To measure the extend to which % of orders

orders are sent or received using
standard electronic messages

What % of your orders are transacted

During the last
via EDI (Electronic Data Interchange) or month
XML (Extensible Markup Language) ?

IM07

% of invoices transacted via EDI %

or XML

To measure the extent to which

invoices are sent or received
using standard electronic
messages

% of invoices

What % of your invoices are transacted During the last

via EDI (Electronic Data Interchange) or month
XML (Extensible Markup Language)?

IM08

% of shipments for which a

%
despatch advice was transmitted
via EDI or XML

To measure the extent to which

electronic despatch advice
messages are being used

% of shipments

(Number of shipments which are

During the last
accompanied by an electronic despatch month
advice message / total number of
shipments) * 100

IM09

% of shipments for which a

%
receiving advice was transacted
via EDI or XML

To measure the extent to which

receiving advice messages are
being exchanged electronically

% of shipments

(Number of shipments for which a

receiving advice was exchanged via
EDI or XML / total number of
shipments) * 100

During the last

month

IM10

% of sales with synchronized

master data between trading
partners via the Global Data
Synchronization Network
(GDSN)

To measure the extent to which

master data is being
synchronized following the
standards laid out by GDSN Inc

% of sales value

What % of your sales (measured in

revenue) has neutral master data
synchronized following the GDSN
standards?

During the last

month

IM11

% of sales with master data

%
loaded into a GS1-certified data
pool

To measure the proportion of

% of sales value
sales where master data is at
least available in a GS1-certified
data pool even if it isn't actually
being being synchronised with
trading partners

Take all your SKUs which have their

During the last
master data loaded into at least one
month
GS1-certified data pool. Determine the
total sales value of these SKUs. What
proportion of your total revenue do
these represent?

IM12

% of GTINs that are catalogued %

consistently with Global Product
Classification Standards

To measure the extent to which % of GTINs

the Global Product Classification
Standards have been adopted

The % of your company's products

At present
(registered as GTINs) which have been
classified and catalogued using the
Global Product Classification Standards

Measure

Implementation Measures

At present