KPI - The Best KPI (Key Performance Indicator) for Supply Chain & Logistics

#supplychainkpi #logisticskpi Yes, quite possibly the best KPI (Key Performance Indicator) for Supply Chain & Logistics. 👉 Need some help to improve your Supply Chain Performance? 👉 Book a Call. https://logisticsbureau.org/witWunLCE... Or connect with me on LinkedIn here: https://logisticsbureau.org/witWunLCE... 👇 Scroll Down for Our Most Popular Videos List 👇 👇 TIMESTAMPS (in case you want to skip) 👇 0:00 Intro 0:33 Probability of a perfect order 1:54 Order Entry Accuracy 2:49 Inventory Availability 3:22 Warehouse DIFOT Service Level 3:48 Carrier Delivers 4:08 Customer Accepts Order 4:23 Accurate Invoice Paid 4:34 Accurate Reflection of your Performance 6:45 Summary 8:14 Outro Do please comment with your thoughts, any questions and don't forget to subscribe. ⚡ Check Out our 16 Week Webinar Series ⚡ https://logisticsbureau.org/witWunLCE... Check out the other links below. There is loads of information on my Supply Chain Blog too. And why not connect on social media? LinkedIn: https://logisticsbureau.org/witWunLCE... Facebook: https://logisticsbureau.org/witWunLCE... Supply Chain Blog: https://logisticsbureau.org/witWunLCE... Supply Chain Education Online & eBooks: https://logisticsbureau.org/witWunLCE... 👉 Our Most Popular Videos List 👇 🏛️ Warehouse Design Principles: https://logisticsbureau.org/witWunLCE... 📏 KPI Case Study: https://logisticsbureau.org/witWunLCE... 🛒 Procurement v Purchasing: https://logisticsbureau.org/witWunLCE... 💯 The Best KPI Ever: https://logisticsbureau.org/witWunLCE... 🗺️ 10 Minute Strategy: https://logisticsbureau.org/witWunLCE... 📉 How to Improve Inventory: https://logisticsbureau.org/witWunLCE... 🥇 7 x 3PL Essentials to Look for: https://logisticsbureau.org/witWunLCE... 👏 Getting a Supply Chain Job: https://logisticsbureau.org/witWunLCE... *KPIs in Supply Chain: The Best Metric for Customer Service Performance* This week on *Supply Chain Secrets*, we're tackling one of the biggest challenges in logistics—KPIs, specifically customer service measures. Many businesses struggle with tracking the right metrics or get overwhelmed by too many. But what if I told you there’s one KPI that stands above the rest? Introducing the **Probability of a Perfect Order**—a powerful, holistic measure that gives you a true picture of how well you're serving your customers. Most supply chain professionals rely heavily on **DIFOT (Delivered In Full On Time)**, but that alone doesn’t give the full picture. Instead, you need to track multiple critical points in the order process, including: ✔️ *Order Entry Accuracy* – Are orders entered correctly into the system? ✔️ *Inventory Availability* – Do you actually have the stock to fulfill the order? ✔️ *Warehouse DIFOT* – Can the warehouse pick, pack, and dispatch orders without errors? ✔️ *Carrier Delivery Performance* – Is the shipment arriving in full and on time? ✔️ *Customer Acceptance* – Is the order correct, undamaged, and properly invoiced? ✔️ *Invoice Payment Accuracy* – Are invoices accurate and paid on time? By multiplying the success rates of these steps, you uncover the *real* probability of a perfect order. In a case study we analyzed, a business initially thought they were performing well with a 98% DIFOT, but their true perfect order probability was only **64%**! The industry average was 68%, while best-in-class performers hit 93%. By focusing on the right KPIs—especially inventory availability—this company made significant improvements, reaching best-in-class within two years. This KPI fosters *cross-functional collaboration* across supply chain, customer service, finance, and warehousing teams, driving real performance gains. If you’re looking for **one KPI to rule them all**, this is it. Let me know in the comments—how are you tracking customer service in your supply chain? And stay tuned for another video soon on selecting the right KPIs for different levels of your business. 📅 *New videos every Wednesday!* Don’t forget to *like, subscribe, and hit the bell* so you never miss out. See you next week!