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What metrics do you use to measure supply chain performance?

Your Answer

How To Answer This Question?

When answering this question, highlight your knowledge of various supply chain metrics and explain why they are important. Common metrics include:

  1. Order Accuracy: Measures the percentage of orders delivered correctly without errors. High order accuracy indicates efficient processes and customer satisfaction.

  2. On-Time Delivery: Tracks the percentage of orders delivered on or before the promised delivery date. This metric is crucial for customer satisfaction and retention.

  3. Inventory Turnover: Indicates how often inventory is sold and replaced over a period. High turnover rates can suggest efficient inventory management.

  4. Supply Chain Cycle Time: Measures the total time taken from placing an order with a supplier to delivering the product to the customer. Shorter cycle times can indicate a more responsive supply chain.

  5. Cost to Serve: Calculates the total cost of delivering a product to a customer, including production, warehousing, and transportation costs. Lower costs to serve can improve profitability.

  6. Fill Rate: The percentage of customer demand that is met without backorders or stockouts. A high fill rate indicates good inventory management and customer service.

Provide examples from your past experience where you successfully used these metrics to improve supply chain performance. This will demonstrate your practical knowledge and effectiveness in the role.

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