Most of us assume that our supply chain functions are doing okay until we hear from a customer, our CEO, COO, or CFO that something just isn’t right with our labor or non-labor expenses or our supply chain department’s operational performance. I remember this happening to a supply chain vice president who was touting to his CFO that he had the best IV set prices in the region, only to hear three months later from his CFO that his IDN’s IV set and solutions cost was higher than before they signed a new IV set and solutions contract. If only this VP had key performance indicators (KPIs) to give him a heads up that this was occurring, he could have avoided this embarrassing situation. This is just one of the following five ways that KPIs can make your healthcare supply chain operations better than just good: