KPIs

Critical success factors (CSFs) are the vital areas ‘where things must
go right’ for the business in order for them to achieve their strategic
objectives

Key performance indicators (KPIs) are the measures which indicate
whether or not the CSFs are being achieved.
The achievement of the KPIs should be measured and any necessary
corrective action taken

• KPIs should cascade from strategy to tactics, and to operational level.
• KPIs should cover all perspectives in supply chain management such as
cost information and financial performance, quality of the supply chain,
flexibility, resource utilisation, innovation, sustainability and
competitiveness. This coverage will give a complete and well balanced
view of
– internal/external performance
– short-term and long-term performance and
– financial performance and non-financial performance.
• KPIs should be challenging but achievable and should enable employees
to understand the performance measures they have control over and
should motivate them to achieve KPIs through the establishment of
appropriate rewards.
• KPIs should be SMART, i.e. specific, measurable, achievable, relevant
and time-bound.
• KPIs should be extended to include supply chain partners, because the
objective of SCM is to create a supply chain that is much more competitive
than the alternative supply chain providers’ of that product or service

• Supply chain costs per unit sold
• Time taken to deliver a customer order
• Percentage on-time delivery to a customer
• Percentage of customer orders fulfilled
• Percentage defect rate (supplies and customer orders)
• Percentage wastage rate
• Quality costs (individual KPIs for prevention, detection, internal failure and
external failure costs)
• Labour utilisation rate
• Asset utilisation rate
• Warehousing costs
• Transport costs
• Queues and waiting times
• Working capital ratios such as inventory days, payable days and
receivable days and the length of the cash operating cycle:
– Inventory days = Inventory ÷ Cost of sales × 365
– Receivables days = Receivables ÷ Sales × 365
– Payables days = Payables ÷ Purchases × 365
– Cash operating cycle = Inventory days + Receivables days –
Payables days

- % market share increase
- Customer rentention rate
- Cost of customer acquisition
- Marketing spend per customer
- Customer lifetime value
- Website traffic to conversion rate %
- Social media reach
- Repurchase rate
- Price relative to industry average

Recruitment and selection
- cost per employee hired
- Selection method conversion rate
- Time to fill a position
- female to male ratio

Training and Development
- Training and development costs
- Impact of training on existing KPIs
- Training feedback

Performace management
- Appraisals completed on time
- Appraisal action plan agreed and followed up

Motivation
-Turnover rate
- Employee absenteeism
- Employee Productivity
- Employee satisfaction scores
- Flexible working arrangements offered

Reward systems
- Cost of rewards
- Competitiveness of reward system
Adherence to laws and regulations

Operational
- Ticket response rates for IT issues sent to IT support
- Resolution rates
- System/technology downtime

Transformational
- Cost of new technology
- Times saved using new technology
- IT spend per employee
- IT utilisation
- Security adherence / breaches

Strategic
- New / improved business opportunities using technology
- Revenue generated by using new technology
- Technology leading to competitve advantage
- IT function as a leader in the market

- on time delivery rate
- Quality defect rate
- Order accuracy
- Cost competitiveness
- Responsiveness and communication

Performance management - They show if operational activities (like production, customer service, quality control) are meeting targets.

Decision making support - KPI's provide objective data to help managers make better decisions - for example, whether to fix a problem, invest in new tech, or adjust staffing.

Accountability - They assign responsibility. Teams or individuals know what they are measured against, which can drive better performance.

Early Warning Signs - If KPI's start to slip, it can highlight issues early before they tuen into big problems (eg falling customer satisfaction scores hint at service issues)

Alighnment with Strategy - Even at operational level, KPI's ensure the daily work supports the company's overall strategic goals (eg efficiency, quality, customer loyalty)

Continuous Improvement - Tracking KPI's allows companies to spot trends and focus on improving processes over time.

1. User Retention Rate (30-Day)
Specific: Percentage of users who return to the app within 30 days of first use.

Measurable: Tracked using analytics tools (e.g., Mixpanel, Firebase).

Achievable: Target retention rate depends on industry, e.g., 20%+ is solid.

Relevant: Indicates app value and user satisfaction.

Time-bound: Measured monthly.

Example KPI: Achieve a 30-day user retention rate of at least 25% by Q3.

2. Daily Active Users (DAU) Growth
Specific: Number of unique users who engage with the app daily.

Measurable: Measured through app analytics.

Achievable: Depends on current baseline and marketing efforts.

Relevant: Reflects app engagement and usage frequency.

Time-bound: Tracked daily; assessed weekly/monthly.

Example KPI: Increase DAU by 15% month-over-month for the next 3 months.

3. Average Session Duration
Specific: The average time users spend per session in the app.

Measurable: Tracked via session analytics.

Achievable: Target set based on current averages.

Relevant: Indicates app stickiness and content quality.

Time-bound: Measured weekly/monthly.

Example KPI: Increase average session duration to 5 minutes within the next quarter.

4. Conversion Rate
Specific: Percentage of users who complete a key action (e.g., sign-up, purchase).

Measurable: Defined by funnel tracking.

Achievable: Varies by goal and current rate.

Relevant: Directly tied to business outcomes.

Time-bound: Tracked in monthly reports.

Example KPI: Improve onboarding conversion rate from 30% to 50% in 60 days.

5. Crash-Free Sessions
Specific: Percentage of app sessions that do not end in a crash.

Measurable: Tracked through crash monitoring tools (e.g., Sentry, Crashlytics).

Achievable: High stability is a realistic goal for mature apps.

Relevant: Critical for user experience and app store ratings.

Time-bound: Tracked continuously, reported monthly.

Example KPI: Maintain 99.5% crash-free sessions over the next 3 months.

1. On-Time Delivery Rate
Specific: Percentage of orders delivered on or before the promised delivery time.

Measurable: Tracked through delivery logs and GPS data.

Achievable: Industry targets often aim for 95% or higher.

Relevant: Directly impacts customer satisfaction and reliability.

Time-bound: Monitored weekly or monthly.

Example KPI: Achieve a 96% on-time delivery rate by the end of Q2.

2. Delivery Cost per Order
Specific: Average cost incurred to deliver a single order.

Measurable: Calculated from operational costs and order volume.

Achievable: Target set based on industry benchmarks and current costs.

Relevant: Crucial for profitability and pricing strategy.

Time-bound: Reviewed monthly.

Example KPI: Reduce delivery cost per order by 10% over the next 6 months.

3. Customer Satisfaction Score (CSAT)
Specific: Average rating from customers post-delivery (e.g., 1–5 scale).

Measurable: Collected via surveys or app feedback.

Achievable: Goal set based on baseline scores.

Relevant: Reflects service quality and impacts retention.

Time-bound: Analyzed quarterly.

Example KPI: Maintain an average CSAT of 4.5 or higher each quarter.

4. Failed Delivery Rate
Specific: Percentage of deliveries that fail on the first attempt.

Measurable: Tracked in logistics systems.

Achievable: Lower rates are possible with good route planning and communication.

Relevant: Impacts costs and customer experience.

Time-bound: Evaluated monthly.

Example KPI: Reduce failed delivery rate to below 3% within 3 months.

5. Average Delivery Time
Specific: The average time it takes from dispatch to successful delivery.

Measurable: Measured using route tracking tools.

Achievable: Set against historical averages and local constraints.

Relevant: A key performance and competitiveness metric.

Time-bound: Tracked weekly.

Example KPI: Decrease average delivery time by 15% over the next quarter.

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