Supply chain management entails a series of operations that convert raw resources to completed items to add value. Being a critical process, using effective Supply Chain OKRs for the supply chain team may unquestionably help a business increase its operational efficiency and thus profitability.
Check out the below Supply Chain OKR Examples that can help with your business transformation.
Supply Chain OKRs for Inventory
O Maintain a balanced inventory
KR Eliminate the time required to process orders from 48 hours to 14 hours.
KR Increase lead time for reorder level in Q4 from 8 days to 3 days.
KR Reduce the number of customer backorders from 4 percent to 2 percent.
O Minimize material loss
KR Add 15 cameras to the godown to increase coverage and allow for theft identification.
KR Increase the frequency of safe material handling training from twice a year to once a quarter.
KR Decrease losses due to poor temperature control from 3% to 0%
Supply Chain OKRs for Purchase
O Optimize the efficiency of the purchase department
KR Reduce the average supplier defect rate from 5% to 0.50 %.
KR Reduce the emergency purchase ratio from 6% to 4% each quarter.
KR Cut the average purchase order cycle time in half, from 6 days to 2 days.
Supply Chain OKRs for Processes
O Incorporate Sustainability into Supply Chain Operations
KR Increase the sustainability index by 15%.
KR Continue to save $ 40K via carbon inefficiency education.
KR Maintain savings of up to $15,000 by recycling, reusing, and refurbishing materials.
O Take Full Advantage of Technology in Supply Chain
KR Increase the number of qualified suppliers through buyer and supplier community models.
KR Achieve 100% automation of Supply Chain visibility.
O Develop and Implement Decision Support Systems
KR Apply prescriptive analytics recommendations to increase the number of decisions taken.
KR Reduce inventory costs by recommending big data analysis.
Supply Chain OKRs for Delivery
O Increase the effectiveness of shipping and freighting operations
KR Improve order rate in Q1 from 95 to 100 percent.
KR The rate of precision of freight bills should be increased from 94% to 99% in Q1.
KR Reduce the cost of shipping and freight per unit from $4 to $3.
O Significantly improve customer delivery time
KR Increase the percentage of on-time shipments from 85% to 98.5%.
KR Increase the number of orders sent out for delivery within 24 hours from 30% to 60%.
KR Increase the shipping-on-time delivery rate from 85% to 90%.
O Improve client satisfaction
KR Provide a solution for end-to-end delivery traceability.
KR Reduce the number of late deliveries from 25% to 5%.
KR Reduce response time to online customer delivery questions from 3 hours to 30 minutes.
These 10 supply chain OKR examples will help you apply your OKRs effectively to manage your supply chain demands.