– Working capital as a percent of sales as compared to that of our peers
– Actual supplier lead time
– First-pass yield (also known as the "perfect order")
– Error rates, to include overages, shortages, delivering wrong product, invoices
– Process error rates and process lead times
– Number of touches – how many times one of the product hits the facilities
– Supply expense as a percentage of operating revenue
– Supply expense per patient discharged (hospital)
– SCM impact savings – what should have cost compared to using SCM methodologies in what we actually pay
– Repair turnaround time
– Changeover time (setup time)
– Supply chain cost per output unit – encompass transportation costs, fulfillment cost, inventory planning cost
– On-time delivery
– Percentage of suppliers on pull systems
– Percentage of invoices that go through accounts payable without any human intervention (touchless)
– Percentage of touchless purchase orders
– Purchasing department spend as percent of sales, general and administrative (SG&A) expenses
– Percentage of supplier spend from approved supplier list
– Percent of supply base that is optimized.
Source: Zsidisin, G. A. "Lean Implementation," Inside Supply Management, November 2008, Vol. 19, No. 11, pp. 36-37.
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