KPI: Supplier reliability

Introduction

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Goal of the KPI

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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:

Where denotes the impact a deviation has on the KPI.

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

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