Most exporters don’t fail because of poor products. They fail because of delays, mismanaged stock, and unexpected costs eating into their margins. You could have the best quality, the perfect branding, and strong demand, but if your supply chain is inefficient, you’ll bleed money without even realizing it.
And fixing this isn’t guesswork. The right numbers tell you exactly where your supply chain is losing money and how to fix it.
In this blog, we’ll break down 15 key KPIs for the supply chain that every Indian exporter should watch. By the end, you’ll know how to measure, analyze, and improve each one, ensuring your business runs like a well-oiled machine.
A KPI is a measurable value that shows how effectively your supply chain is meeting its goals. Instead of relying on guesswork, KPIs for the supply chain provide hard data to track performance, identify weak spots, and make informed decisions.
Exporting is complex. Your goods move across borders, pass through multiple checkpoints, and rely on different vendors. Keeping track of it all manually is nearly impossible. By focusing on the right KPIs, you can:
Now that you understand why KPIs matter, let’s look at the 15 most important KPIs for the supply chain that will help you take control of your operations.
Tracking the right KPIs can mean the difference between a smooth-running export business and one that constantly struggles with delays, high costs, and lost customers. Below are the 15 key KPIs for the supply chain that every Indian exporter should monitor.
What it measures: The percentage of shipments delivered on or before the promised date.
Why it matters: Late deliveries hurt your reputation, cause payment delays, and may even result in penalties from buyers. Exporters dealing with international clients must stick to strict delivery schedules, especially when shipping perishable or seasonal goods.
How to improve it:
What it measures: The ratio of unsold stock compared to total sales over a given period.
Why it matters: Holding too much stock locks up your money, but not having enough means missing out on sales. A balanced ISR ensures that you’re neither overstocked nor understocked.
How to improve it:
What it measures: The total cost of storing unsold inventory, including warehousing, depreciation, and insurance.
Why it matters: High storage costs eat into your profits. If your carrying costs are too high, it may mean that you are holding too much inventory or not selling fast enough.
How to improve it:
What it measures: The time it takes for suppliers to process, ship, and deliver raw materials or finished goods.
Why it matters: If suppliers take too long to fulfill orders, your entire supply chain slows down. Consistently tracking this KPI helps exporters identify slow or unreliable suppliers.
How to improve it:
What it measures: The average number of days it takes to sell your inventory.
Why it matters: A high DSI means stock is sitting in your warehouse for too long, increasing storage costs. A low DSI means products are selling quickly, which is generally a positive sign.
How to improve it:
What it measures: The total transportation cost per unit of product shipped.
Why it matters: If freight costs are too high, they can significantly impact profit margins. Exporters need to optimize their logistics strategy to keep costs low.
How to improve it:
What it measures: The percentage of orders that arrive on time, complete, and in perfect condition.
Why it matters: Even if an order arrives on time, missing items, damaged goods, or incorrect documentation can create major headaches. A high perfect order rate means your logistics process is running smoothly.
How to improve it:
What it measures: The percentage of times your suppliers deliver materials or products on schedule.
Why it matters: If suppliers are late, production and shipping schedules are thrown off, leading to missed delivery deadlines for your buyers.
How to improve it:
What it measures: The total time taken from receiving a purchase order to deliver the final product to the customer.
Why it matters: Faster order cycle times lead to better customer satisfaction and more repeat business. Long delays can lead to cancellations or penalties from international buyers.
How to improve it:
What it measures: The time it takes to convert inventory into cash flow after a sale.
Why it matters: A shorter CCC means you get paid faster and can reinvest in your business. If your CCC is too long, your money is stuck in inventory and unpaid invoices.
How to improve it:
What it measures: The percentage of orders that are returned due to defects, damage, or incorrect shipments.
Why it matters: High return rates indicate problems with product quality, packaging, or order accuracy. Every returned order means additional costs and potential damage to your reputation.
How to improve it:
What it measures: The percentage of orders picked, packed, and shipped without errors from the warehouse.
Why it matters: Mistakes in warehousing can lead to incorrect shipments, delays, and dissatisfied customers. A high accuracy rate means your warehouse operations are running smoothly.
How to improve it:
What it measures: The total time taken to complete an entire supply chain cycle—from ordering raw materials to delivering the final product.
Why it matters: A shorter cycle time increases efficiency and reduces costs. If this metric is too high, it may indicate delays in production, shipping, or supplier reliability.
How to improve it:
What it measures: The percentage of shipments that meet all regulatory and customer compliance requirements, including documentation, packaging, and labeling.
Why it matters: Exporters need to comply with customs regulations, product standards, and buyer requirements. Non-compliance can mean heavy fines, shipping delays, or even having your orders turned away.
How to improve it:
What it measures: The ratio of logistics costs to total revenue.
Why it matters: If logistics costs are too high compared to your revenue, it eats into your profit margins. This KPI helps you find cost-saving opportunities in transportation, warehousing, and distribution.
How to improve it:
Exporting is complex, but technology can make it easier. Let’s see how Pazago can simplify your supply chain and improve your KPI performance.
Pazago provides exporters with solutions to track and enhance key performance metrics. From shipping reliability to compliance, Pazago simplifies operations, helping you stay ahead in the competitive export market.
By integrating these features, Pazago helps exporters improve efficiency, reduce supply chain costs, and ensure smoother global trade operations.
Exporting comes with its share of challenges. Delays, high costs, and inefficiencies can quickly add up. But by tracking the right supply chain KPIs, you can identify weak spots, reduce risks, and improve overall performance. From on-time deliveries and inventory management to cost control and supplier reliability, these metrics give you a clear picture of where your business stands and what needs improvement.
However, monitoring and optimizing these KPIs for the supply chain can be time-consuming. That’s where Pazago comes in. With centralized document management, real-time shipment tracking, optimized logistics, and smart financial tools, Pazago helps you streamline operations and improve key supply chain metrics effortlessly.
Ready to improve your supply chain performance? Book a demo today and see how it can help you reduce costs, eliminate delays, and scale your export business efficiently!