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 Industry clouds prove their business value Born of partnerships and ecosystem-centric by their nature, cloud solutions aimed at specific verticals are taking root, forming a complex, rapidly evolving market CIOs must be strategic about entering. By Paula Rooney Mar 24, 2023 7 mins Cloud Computing Feature What is data governance? Best practices for managing data assets Data governance defines roles, responsibilities, and processes for ensuring accountability for and ownership of data assets across the enterprise. By Thor Olavsrud Mar 24, 2023 10 mins IT Governance Frameworks Big Data Data Mining BrandPost Stay in Control of Your Data with a Secure and Compliant Sovereign Cloud By Stan Kwong Mar 23, 2023 6 mins Cloud Security Cloud Computing News Accenture to lay off 19,000 to cut costs amid economic uncertainty Technology services giant Accenture will continue to hire but meanwhile is cutting staff to streamline operations in the face of economic headwinds. By Anirban Ghoshal Mar 23, 2023 2 mins IT Consulting Services Technology Industry 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