Supply Chain KPIs
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Time to receive
Time to receive
The duration elapsed from the initiation of an order placement to the moment of physical receipt of the goods or materials at the designated location within the supply chain network.
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Time to Receive is the duration to receive inventory after placing an order with a supplier.

KPI Definition

Time to receive, within the realm of supply chain Key Performance Indicators (KPIs), signifies the duration elapsed from the initiation of an order placement to the moment of physical receipt of the goods or materials at the designated location within the supply chain network. This metric encompasses the entire logistical process, encompassing order processing, procurement, transportation, handling, and receipt verification. It serves as a pivotal indicator of supply chain efficiency, responsiveness, and reliability, directly impacting customer satisfaction, inventory management, and operational costs. A shorter time to receive implies streamlined processes, effective coordination among stakeholders, and enhanced agility in responding to customer demands, ultimately fostering competitive advantages in the marketplace.

Business Value

Improved Supplier Performance: Monitoring Time to Receive allows organizations to evaluate the timeliness and reliability of their suppliers. By tracking the time it takes for suppliers to deliver goods, organizations can identify underperforming suppliers and negotiate better terms or seek alternative suppliers to improve overall supply chain efficiency.

Movement Direction

Sample Formula

Time to Receive=Receipt Date−Order Placement Date

Should Aim For
1
Shortening the Time to Receive enables organizations to reduce lead times, and improve overall efficiency.
2
3
Track Similar KPIs
Reserved Inventory Quantity movement over time
This metric entails the analysis of changes in Reserved Inventory Quantity over time, spanning days, weeks, months, or accounting cycles, to assess the effectiveness of inventory management practices, demand forecasting accuracy, and operational efficiency within the supply chain ecosystem.
Untouched Inventory value
This metric encompasses the value of inventory items that have not undergone any significant movement, including sales, transfers, or consumption, within a designated timeframe.
Untouched Items
Untouched items serve as a critical indicator of potential inefficiencies, overstocking, or inadequate inventory management practices within the supply chain ecosystem
Untouched On Hand Good Quantity
Untouched On Hand Good Quantity serves as a critical indicator of potential inefficiencies, overstocking, or inadequate inventory management practices within the supply chain ecosystem
Max Inventory Value movement over timer presents the highest monetary worth of inventory assets that an organization aims to maintain within its supply chain network at any given time.
Max Inventory Value movement over time refers to the dynamic fluctuations and trends in the upper limit or maximum monetary worth of inventory assets that an organization aims to maintain within its supply chain network over a specified period.
Reserved Inventory Value movement over time
This metric entails the analysis of changes in Reserved Inventory Value over time, spanning days, weeks, months, or accounting cycles, to assess the effectiveness of inventory management practices, demand forecasting accuracy, and operational efficiency within the supply chain ecosystem
Reserved Inventory Value
This metric represents the total value of inventory items that have been designated for various purposes, including customer orders, production requirements, or strategic initiatives
On Hand Good Inventory Quantity movement over time
This metric entails the analysis of changes in On Hand Good Inventory Quantity over time, spanning days, weeks, months, or accounting cycles, to evaluate the effectiveness of inventory management practices, demand forecasting accuracy, and operational efficiency within the supply chain ecosystem.
On Hand Good Inventory Value
On Hand Good Inventory Value serves as a critical measure of inventory availability and financial investment within the supply chain ecosystem.
Reserved Inventory Quantity
Reserved Inventory Quantity encompasses inventory items that have been designated for various purposes, including customer orders, production requirements, or strategic initiatives.
On Hand Good Inventory Value movement over time
Monitoring On Hand Good Inventory Value movement over time provides valuable insights into inventory level optimization, stock replenishment strategies, and financial performance
On Hand Good Inventory Quantity
On Hand Good Inventory Quantity refers to the total quantity of goods or products physically available within the supply chain network at a specific point in time.
Not Moved Inventory Value
Not Moved Inventory Value refers to the monetary worth of inventory assets that have remained stagnant or inactive within the supply chain network for a specified period.
Min Inventoy Value movement over time
Min Inventory Value refers to the dynamic fluctuations and trends in the lowest monetary worth of inventory assets that an organization aims to maintain within its supply chain network over a specified period.
Min Inventoy Value
Min Inventory Value encompasses the monetary value of inventory assets across various categories, including raw materials, work-in-progress, and finished goods, based on factors such as demand variability, lead times, and service level agreements
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