Which KPIs are really relevant?

Of course, this question is not that easy to answer. Depending on the industry in which a company operates, key performance indicators must be adapted to the respective industry.

And yet there are certainly key performance indicators (KPIs) that apply across industries.

Nowadays, for example, it is standard for suppliers to apply and register with potential companies that they want to supply via a portal. A supplier screening supports the respective companies in evaluating suppliers and selecting the right supplier. Here, too, key performance indicators are used to assess the performance of individual suppliers.

A distinction is made here between 'hard facts' and 'soft facts'. The 'hard facts' are key performance indicators that can be recorded numerically. The 'hard facts' include, for example:

• Adherence to deadlines - Was the delivery date kept?
• Quantity compliance - Has the delivery quantity been adhered to?
• Delivery quality - Were there any quality complaints? How many complaints have occurred in a certain period?
• Response speed - How quickly does the supplier react? How well is complaint management set up?

The necessary data for the bare numbers are stored in your system.

The evaluation of the 'soft facts', on the other hand, cannot always be made objective.

In addition, KPIs also help to assess internal performance.

Because it is not always the external suppliers who slow down or even stop your business processes.

The KPIs to be checked include:

• Missing agent determination - Do order and checking processes stall due to incorrect assignments?
• Reasons for blocking - Has the goods been received but not digitally recorded?
• Lead times - How long does your company need from the requirement analysis to the payment of the invoice? Which process step takes the longest?
• Background booking rate - which documents can be automated because they have gone through further process steps without changes except for manual approval?
• Discount loss rate - For how many invoices could the discount not be drawn?