Average Payment Period for Production Materials

When a company wants to analyze the performance of its supply chain, there are several metrics that can be used in this respect. Generally speaking, each individual supply chain performance metric outlines specific information. Essentially, depending on what you want to find out, you can use particular metrics, or, preferably, you might use a combination… Read more »

Supply Chain Metrics
Cash to Cash Cycle Time

If your business deals with supply chains, you must have already acknowledged the importance of supply chain metrics in optimizing your business and maintaining it efficient and easy to manage. They are useful tools which help you determine the efficiency of your business and have a clear picture of how your company is doing. One… Read more »

Supply Chain Metrics
Customer Order Cycle Time

As a business owner, you must already know how important customers are for your company. Not only are they the core of your success but keeping them loyal and fulfilling their orders in time should definitely be one of your top priorities. How can you make sure that the orders you’re fulfilling reach their expectations… Read more »

Supply Chain Metrics
Days of Supply (DOS)

Days of supply, or DOS for short, is a measurement of inventory that allows a company to maintain normal operations for a while. It does so after there is a disruption in the supply chain. So, every additional day of supply is equal to one less day of lost sales, production and profits. Are you… Read more »

Supply Chain Metrics
Days Sales Outstanding

Abbreviated as DSO, the Days Sales Outstanding metric is used to show the average number of days it takes to collect a payment after the company has made a sale. This metric is usually determined for a yearly, quarterly, or monthly period. In short, the Days Sales Outstanding is a financial ratio that’s mean to… Read more »

Supply Chain Metrics
Fill Rate

If your business has a supply chain, then you should be very well informed about the supply chain metrics, because they are an integral part of maintaining an efficient business. These metrics are used to monitor your company and consequently, optimize it. One of the most important supply chain metrics you should consider is the… Read more »

Supply Chain Metrics
Gross Margin Return on Investment (GMROI)

Did you know that you can turn inventory into cash that is above the price of the inventory? If not, you should know it’s possible. But how can you calculate the company’s ability to do that? This is possible to the gross margin return on investment ratio. If you’re here, it’s probably because you want… Read more »

Supply Chain Metrics
Inventory Days of Supply

The Inventory Days of Supply metric is an efficiency ratio that’s usually known as Days in Inventory, the Inventory Period, or Days Inventory Outstanding. It is used to measure the average time – in days – it takes for a company to sell its entire inventory. In short, Inventory Days of Supply shows the average… Read more »

Supply Chain Metrics
Perfect Order Measurement

If your business deals with a supply chain, then you should be very well informed about the supply chain metrics come in so handy for you and your team. As an integral part of maintaining an efficient business, supply chain metrics are used to monitor your company and consequently, optimize it. One of the most… Read more »

Supply Chain Metrics
Supply Chain Cycle Time

In short, the Supply Chain Cycle Time metric shows you how long would it take for your company to satisfy/ deliver an order to a customer if all of its inventory levels were on zero. This metric matters because, in a company, time is of the essence, as people usually say. Therefore, each and every… Read more »

Supply Chain Metrics