What you need to know about supply chain performance. How Are You Doing? Consultancy Pittiglio Rabin Todd & McGrath (PRTM) of Waltham, Mass., surveyed global companies across a sampling of industries to come up with best-in-class and median performances. 1. Total supply chain management costs (total cost of planning, IT and acquiring materials, plus managing order processing, inventory and supply-chain finance). Best in class: 4 percent to 5 percent of sales Median: 8 percent to 12 percent of sales Savings: for a company with $500 million in annual sales, best in class nets a $25 million to $30 million advantage yearly 2. Cash-to-cash cycle time (the number of days between paying for raw materials and getting paid for product) Best in class: 30 days or less Median: 100 days 3. Delivery performance to request (the percentage of orders that are fulfilled on or before the customer’s requested date) Best in class: 94 percent Median: 69 percent to 81 percent How Are Your Suppliers Doing? Staples, the office supply products retailer, publishes key performance metrics on its supplier website—universal metrics for keeping suppliers on their toes including: Initial fill rate: What percentage of the goods ordered did the supplier send in its first shipment? (A key driver of inventory availability to retail customers.) Initial order lead time: How long did it take to get delivered goods after placing the order? (A good measure of a supplier’s supply chain responsiveness and speed.) On time receipt performance: If a supplier agrees to your specified delivery date, how often was the product in your warehouse when you wanted it? Related content feature 4 remedies to avoid cloud app migration headaches The compelling benefits of using proprietary cloud-native services come at a price: vendor lock-in. Here are ways CIOs can effectively plan without getting stuck. By Robert Mitchell Nov 29, 2023 9 mins CIO Managed Service Providers Managed IT Services case study Steps Gerresheimer takes to transform its IT CIO Zafer Nalbant explains what the medical packaging manufacturer does to modernize its IT through AI, automation, and hybrid cloud. By Jens Dose Nov 29, 2023 6 mins CIO SAP ServiceNow feature Per Scholas redefines IT hiring by diversifying the IT talent pipeline What started as a technology reclamation nonprofit has since transformed into a robust, tuition-free training program that seeks to redefine how companies fill tech skills gaps with rising talent. By Sarah K. White Nov 29, 2023 11 mins Diversity and Inclusion Hiring news Saudi Arabia will host the World Expo 2030 in Riyadh By Andrea Benito Nov 28, 2023 4 mins Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe