August 29

6 Essential KPIs for Hospital Supply Chain Success


Key performance indicators (KPIs) are crucial for measuring the success and progress of hospital supply chain management. By tracking specific metrics, supply chain leaders can gain valuable insights into their performance and make informed decisions. In this blog article, we will discuss six essential KPIs every supply chain professional should monitor to ensure long-term success:

KPIs to Ensure Long-Term Success

1. Employee Productivity: This KPI enables you to track the output and efficiency of your employees by measuring the output and input of items picked per hour.

2. Inventory to Patient Days Ratio: In addition to inventory turnover, you could also measure your inventory effectiveness by measuring your inventory value to patient days ratio. This could be an even better measurement than any other yardstick since it measures your inventory intensity.

3. Freight Cost Per Ton Received: With the cost of freight increasing every day it makes sense to measure your freight cost per ton received to make sure that your shipping cost is within acceptable limits.

4. Utilization Per Activity Cost: Every product and service you purchase can be measured to determine its utilization. Thus, enabling you to make midcourse adjustments when a product or service is found to be wasteful or inefficient, misused, misapplied, or a value mismatch.

5. Suppliers’ On Time Deliveries: It is mission critical to measure your suppliers’ on time deliveries to avoid back orders, substitutions, and stockouts.

6. Perfect Order Deliver Rate: Perfect order delivery rate is the ideal performance indicator for customer satisfaction. This supply chain metric is expressed as a percentage of perfect orders you delivered to your customers out of the total number of orders delivered. Your organization can set its own measurable criteria to determine what constitutes a perfect order.

It is good to be reminded that what is measured happens. That’s why KPIs are so important to your supply chain operations. Without measurement you are flying blind and could crash at any time. Don’t risk losing control of your supply chain.

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benchmarks, healthcare, hospital, key performance indicators, KPIs, supply chain, supply chain management, supply utilization, value analysis

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