Best practices for supply chain metrics
When establishing supply chain metrics, best practices include maintaining consistency and understanding the business value:
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Consistency – Metrics must have the same definition each time they are used so that you can accurately compare time periods. If the calculation or definition is updated, make sure you have full documentation and stakeholder agreement before implementing.
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Business value – The metric must have a clear business meaning and application. The supply chain metrics you establish should support your business strategy. For example, if your organization is focusing on turning inventory, you might select the inventory velocity, inventory turn, and inventory aging calculations as your key metrics.
Depending on your situation and the metric you've selected, you might need multiple calculations to create that metric.
In addition to these best practices for selecting your supply chain metrics, we also recommend that you adhere to the Pivot table best practices (Quick documentation). These best practices include recommendations for how to maximize computational performance and viewer accessibility.
