Sadly it’s not such an easy question.
Of course they need to be SMART. Specific, Measurable, Achievable, Relevant, Time phased.
But my take on KPIs is this.
Don’t have too many! I’ve literally seen KPI ‘packs’ the size of phone books, and even KPI sets circulated as a monthly magazine… that no one reads. Remember what the K stands for!
Make sure they ‘tie’ in with your goals and objectives. Do they directly support those objectives?
So that unfortunately means, that many of your supply chain KPIs may not be stock standard ones. But in Supply Chain you would normally expect to see this standard set, along with those that are more specific to your business needs.
DIF – Delivery in Full
DOT – Delivery on Time
DIFOT – Delivery In Full on Time
Cost as a percentage of sales (Logistics or Supply Chain)
Inventory stock turns in Days.
If you’d like to read more about Supply Chain KPIs, you can download (free) a chapter from one of our Best Selling Books on the topic.