KPI (Key Performance Indicator)
Quick answer
A quantitative measure of performance against a goal, used to monitor and improve operations.
Key takeaways
- OTIF (on-time in-full delivery)
- Fill rate and perfect order rate
- Order cycle time
- Stock accuracy and inventory turnover
What a KPI is
KPI (Key Performance Indicator) is a measurable indicator showing how well you meet an objective. In operations and supply chain, KPIs translate daily activity into management figures.
Why it matters to the board
'You can't manage what you don't measure.' Good KPIs link operational execution to financial results and provide a common language between warehouse, sales and leadership.
Essential operational KPIs
- OTIF (on-time in-full delivery)
- Fill rate and perfect order rate
- Order cycle time
- Stock accuracy and inventory turnover
How CRMconnect helps
CRMconnect computes operational KPIs automatically from real data (orders, deliveries, stock) and presents them in a control tower, instead of delayed manual reports.
Real-world example
Management tracked monthly OTIF in Excel, always late. With the CRMconnect KPI dashboard, OTIF and fill rate became visible daily, per retailer, enabling fast corrections.
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Frequently asked
How many KPIs should I track?+
Few and relevant. A focused set (OTIF, fill rate, order cycle time, stock accuracy) is more useful than dozens of indicators you don't act on.
KPI vs metric?+
Every KPI is a metric, but not every metric is a KPI. A KPI is directly tied to a business objective you want to improve.
Where CRMconnect fits
Related terms
OTIF (On-Time In-Full)
Share of orders delivered on time AND complete. Critical KPI for modern retailer relationships.
OperationsFill rate
The percentage of customer demand fulfilled fully from stock at first delivery, without backorder - a key service-level metric.
OperationsPerfect order rate
The percentage of orders delivered with no errors - on time, in full, undamaged and with correct documentation.
TechnologyControl tower (supply chain)
A single visibility and decision hub that aggregates chain-wide data to detect and resolve issues proactively.