The Seven Prime Supply Chain Performance Metrics

We will use two of the financial ratios from the profitability category and four of the financial ratios from the efficiency category for the primary gauges on our supply chain financials dashboard.

Supply Chain Profitability Ratios: 

• Gross Profit Margin Percent (GPM) 
• Return on Assets (ROA)

Supply Chain Efficiency Ratios: 

• Days Payable Outstanding (DPO) 
• Days In Inventory (DII) 
• Days Sales Outstanding (DSO) 
• Total Asset Turnover (TAT)

We will also add in Revenue Growth ($Rev) as a primary gauge for supply chain.  We will define the rationale for this metric as it relates to supply chain in future entries. 

Here is what our dashboard looks like graphically:

For each of these dashboard gauges we will connect the supply chain sensors through a common process improvement tool to help us identify the direct relationship of supply chain actions to financial performance.