{"id":933,"date":"2022-03-18T12:26:54","date_gmt":"2022-03-18T17:26:54","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/blog\/supply-chain-performance\/"},"modified":"2025-07-11T18:15:57","modified_gmt":"2025-07-11T18:15:57","slug":"supply-chain-performance","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/uk\/blog\/supply-chain-performance\/","title":{"rendered":"Supply Chain Performance: Key Metrics to Track & How to Improve It"},"content":{"rendered":"\n

Table of Contents<\/p>

** Minutes<\/p><\/div><\/div>\n

What is supply chain performance?<\/a><\/p>\n\n\n\n

Why is supply chain performance important?<\/a><\/p>\n\n\n\n

Supply chain performance KPIs to track<\/a><\/p>\n\n\n\n

Measuring supply chain performance<\/a><\/p>\n\n\n\n

What affects supply chain performance?<\/a><\/p>\n\n\n\n

3 ways to improve supply chain performance<\/a><\/p>\n\n\n\n

How ShipBob can help you improve your supply chain performance<\/a><\/p>\n\n\n\n

Supply chain performance FAQs<\/a><\/p>\n<\/div>\n\n\n\n

Like the old adage goes: a chain is as strong as the weakest link. A business\u2019s supply chain is no different.<\/p>\n\n\n\n

Whether there\u2019s a manufacturing delay or inaccuracies in fulfilment, every stage of an ecommerce operation impacts the next. <\/span><\/p>\n\n\n\n

This is why proper <\/span>supply chain management<\/span><\/a> is vital for the smooth functioning of an ecommerce business. But how exactly do you know if a supply chain is performing well? And how do you decide what areas of improvement are worth investing in?<\/span><\/p>\n\n\n\n

To effectively manage your business, you need to keep a close eye on your supply chain performance. <\/span><\/p>\n\n\n\n

In this article, we take a closer look at what supply chain performance is, why it matters, which KPIs<\/a> to track, and how to improve it. <\/span><\/p>\n\n\n\n

What is supply chain performance?<\/h2>\n\n\n\n

Supply chain performance refers to how effective each stage of the ecommerce supply chain<\/a> is in optimising costs, reducing inefficiencies, improving speed, and meeting customer expectations. <\/span><\/p>\n\n\n\n

Different aspects of the supply chain such as on-time delivery, stock availability, order accuracy<\/a>, and production lead times<\/a> all play a role in ensuring that its performance is seamless and responsive. <\/span><\/p>\n\n\n\n

Why is supply chain performance important?<\/h2>\n\n\n\n

Supply chain performance goes beyond immediate organizational boundaries; it plays a crucial role in multiple aspects of your business, including accounting, sales, and employee and customer satisfaction.<\/span><\/p>\n\n\n\n

Setting and tracking specific KPIs throughout the supply chain gives businesses the insights and data needed to make improvements and establish a strong logistics system<\/a>. But it also helps to keep your business healthy across departments, so you can reach revenue and growth goals.<\/span><\/p>\n\n\n\n

It affects both short-term and long-term goals<\/h3>\n\n\n\n

Supply chain performance influences whether or not you meet your business goals \u2014 both in the long and short term.<\/span><\/p>\n\n\n\n

How your supply chain activities are functioning right now will determine if you\u2019re operating at a level that\u2019s necessary to achieve those goals, such as expanding into international markets while sustaining a healthy profit margin.<\/span><\/p>\n\n\n\n

For example, you may have a goal to increase sales by X%. But if your supply chain performance indicates that fulfilment rate is slowing down due to a high monthly order volume, chances are you won\u2019t be able to fulfil orders on time to meet customer expectations.<\/span><\/p>\n\n\n\n

Tracking specific KPIs based on past and current performance data can can result in better <\/span>supply chain planning<\/span><\/a>\u00a0so you can prepare for future production, inventory replenishment<\/a>, and faster fulfilment<\/a>. <\/span><\/p>\n\n\n\n

It helps with reducing operating costs<\/h3>\n\n\n\n

Supply chain performance offers a comprehensive look at how logistics operations<\/a> are functioning at every stage. This allows businesses to identify opportunities for improvement. <\/span><\/p>\n\n\n\n

Once you have an understanding of what needs to be improved, you can implement systems, processes, and workflows to optimise costs. <\/span><\/p>\n\n\n\n

And since measuring performance enhances supply chain visibility<\/a>, it mitigates costly mistakes such as failing to reorder at the right time or overstocking on slow-moving items.<\/span><\/p>\n\n\n\n

It improves the financial performance of the company<\/h3>\n\n\n\n

Consistently measuring supply chain performance is essential for building a <\/span>lean supply chain<\/span><\/a>. Not only is it way to make improvements, it\u2019s an opportunity to eliminate inefficiencies within the supply chain to reduce lead times and costs<\/span><\/p>\n\n\n\n

As a result, orders can be fulfilled quickly without compromising accuracy which greatly improves brand loyalty. <\/span><\/p>\n\n\n\n

Supply chain performance KPIs to track<\/h2>\n\n\n\n

Businesses need to keep a close eye on their supply chain KPIs<\/a> and consistently to identify areas of improvement. <\/span><\/p>\n\n\n\n

The <\/span>supply chain analytics<\/span><\/a> and distribution metrics<\/a> you track can greatly improve your operations so you can worry less about logistics and spend more time and energy on delivering a great product. <\/span><\/p>\n\n\n\n

Here are some of the most common supply chain performance KPIs<\/a> to track.<\/p>\n\n\n\n

Perfect order rate<\/h3>\n\n\n\n

What exactly constitutes as a perfect<\/em> order?<\/p>\n\n\n\n