Goal of the KPI
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.
Use of the KPI in Tradecloud