Supply Chain KPIs: 7 Indicators to Evaluate Supply Chain Performance
Supply chain KPIs measure how well your supply chain performs. Learn 7 key KPIs — perfect order, fill rate, OTIF, DSI, and more — with the formula for each.
By Tim Advotics · · Updated · 3 min read
Key takeaways
- Supply chain KPIs are measurable indicators of whether the supply chain runs as planned — from order fulfillment to inventory efficiency.
- Seven widely used KPIs: perfect order fulfillment, fill rate, OTIF, customer order cycle time, days sales of inventory, inventory turnover, and stock accuracy.
- Pick a few KPIs with the biggest impact on customers and cost, measure them with consistent formulas, and review them regularly.
- KPIs are only trustworthy when order, stock, and delivery data are recorded automatically in one system.
Supply chain KPIs are measurable indicators of whether the supply chain runs as planned — from how completely and on time orders are filled to how efficiently inventory is managed. Without KPIs, supply chain reviews are guesswork; with them, problems can be found and fixed before customers feel them.
This article covers the seven most widely used supply chain KPIs, with the formula for each.
Which supply chain KPIs matter most?
| KPI | Measures | Basic formula |
|---|---|---|
| Perfect order fulfillment | Orders with no issues at all | (total orders − problem orders) ÷ total orders × 100% |
| Fill rate | Demand filled from stock | quantity filled ÷ quantity ordered × 100% |
| OTIF (on-time in-full) | Orders both on time and complete | on-time & complete orders ÷ total orders × 100% |
| Customer order cycle time | Time from order to receipt | average (receipt date − order date) |
| Days sales of inventory (DSI) | How many days stock lasts | average inventory ÷ COGS × 365 |
| Inventory turnover | How many times stock turns over | COGS ÷ average inventory |
| Stock accuracy | Records matching physical stock | items matched ÷ items counted × 100% |
1. Perfect order fulfillment
The share of orders delivered without any issue: complete, on time, undamaged, and with correct documents (delivery order, invoice). It is the strictest KPI, because a single error counts the whole order as failed.
2. Fill rate
The share of demand filled straight from available stock, measured per order, per line, or per unit. See the full explanation in What Is Fill Rate?.
3. OTIF (on-time in-full)
The share of orders arriving both on time and complete. Modern retail chains widely use OTIF to rate their suppliers.
4. Customer order cycle time
The average time from when a customer orders to when they receive the goods — covering order processing, warehouse preparation, and delivery. Customers feel this KPI directly.
5. Days sales of inventory (DSI)
The average number of days inventory lasts before it sells. A DSI that is too high means capital is stuck in the warehouse; too low risks stockouts.
6. Inventory turnover
How many times inventory is sold and replaced in a period, usually a year. Higher means inventory converts to sales faster — as long as fill rate holds up.
7. Stock accuracy
The share of items whose physical count matches system records, measured during stock taking or cycle counts. Low stock accuracy makes every other KPI unreliable.
How do you put supply chain KPIs into practice?
- Pick the few KPIs with the biggest impact on customers and cost — you don't need all of them at once.
- Fix consistent definitions and formulas, for example what counts as "on time".
- Set targets per segment, since priority customers and products can have different targets.
- Review regularly — weekly for operational KPIs, monthly or quarterly for inventory KPIs.
- Trace root causes when a KPI drops: the warehouse, delivery, or suppliers?
How can you track supply chain KPIs automatically?
KPIs are only trustworthy when the data is recorded automatically, not compiled by hand from different spreadsheets. With Advotics Distribution, sales orders, stock, delivery orders, and invoices connect in one flow, so late or incomplete orders show up immediately. Advotics Warehouse records stock per SKU and location for inventory KPIs, while Advotics Delivery Plan captures time- and location-stamped proof of delivery to measure on-time performance.
Learn the basics of managing stock in Inventory Management. Want your supply chain KPIs tracked in real time? Contact the Advotics team.
Frequently asked questions
What are supply chain KPIs?
Supply chain KPIs are key performance indicators used to measure how effective and efficient a supply chain is — for example how completely and on time orders are filled and how fast inventory turns.
What are examples of supply chain KPIs?
Common examples: perfect order fulfillment, fill rate, on-time in-full (OTIF), customer order cycle time, days sales of inventory (DSI), inventory turnover, and stock accuracy.
What is the perfect order fulfillment formula?
Perfect order fulfillment = (total orders − problem orders) ÷ total orders × 100%. An order counts as a problem if it is incomplete, late, damaged, or has incorrect documents.
What is the difference between inventory turnover and days sales of inventory?
Inventory turnover counts how many times inventory is sold in a period (COGS ÷ average inventory). Days sales of inventory counts how many days inventory lasts on average before it sells (average inventory ÷ COGS × 365). They measure the same thing from different angles.
How many KPIs should you track?
Start with a few KPIs that matter most to customers and cost — such as fill rate, OTIF, and inventory turnover — and add more as your data and processes mature.
