Inventory KPIs and performance dashboards
KPIs that show whether planning processes are being followed, and whether they are leading to the planned results.
Process adherence:
Are we doing the work we set out to do?
Process KPIs such as working through exceptions before 9am, or completing all critical lead-time reviews once a month, build process discipline. They are also the first step in continuous improvement.
If plans are made but not followed, it becomes hard to tell where things actually stand. The discipline is to do what was planned, then evaluate the results. If a process works, move on to the next opportunity. If it does not, evaluate the results and impact from the facts gathered, and change the process to address the shortcoming or focus on the opportunity.
Process outcomes:
Are we getting the results we need?
Whatever is done should lead to the desired results. Organisations invest in people, process and technology to achieve outcomes. Outcome KPIs track progress, and by linking them to the underlying processes, they also show why a KPI is not being met.
KPIs that fit your organisation
Some KPIs, such as OTIF and availability, are well known and widely used, and have standard interpretations. When they are implemented in a specific organisation, it soon becomes clear that they may need to be measured differently. Availability, for example, might be measured against planned and actual demand commitments, by how long rather than how often an item was out of stock, or with a weighted calculation. The right choice depends on what is agreed and what matters to the end user.
The ability to retrofit KPIs, and to turn standard definitions quickly into KPIs that point to real success factors, is core to the StoXeo continuous improvement approach.
See StoXeo on your own data
Book a demonstration with an inventory specialist, or start with an inventory health check.