The key performance indicators are more operational than strategic in nature.
According to Lambert and Pohlen (2001), this is largely due to a disconnect
between the strategies of an organization and its supply chain, as a result of which
managers are driven by operational measures. Performance indicators that are very
important, and which are customer focused, include service level, percentage
delivered in full on time (DIFOT) in specification, and the costs of transportation
and distribution. Likewise, measures such as delivery speed, inventory turnover,
and procurement lead time are considered important. In contrast, indicators such as
cash-to-cash cycle and procurement costs are of lesser importance.