The Supplier reliability KPI makes it possible to see real time performance per supplier.
Both the buyer and supplier can see this KPI which is calculated based on real time order data.
Calculation of the KPI
How are the KPI’s (key performance indicators) calculated?
To analyze supplier delivery performance we differentiate between 2 indicators:
- KPIrequested = the delivery performance indicator regarding the requested delivery date
- KPIconfirmed = the delivery performance indicator regarding to the by the customer confirmed delivery date
Both indicators are shown as percentages, ranging between 0 and 100%, where 100% indicates the supplier is always delivering as requested/confirmed. To calculate these performances we distinguish between a delivery too early and a delivery too late.
Both use the following formula with different arguments:
The graph below shows the 2 curves of the KPIrequested, where a delivery too early has less impact on the KPI than a delivery too late.
Figure 2: KPIrequested graph, the performance is 50% when 7.5 days delivered before the requested date and 25% when delivered 5 days to late.