Supply Chain KRA/KPI

Key Responsibility Areas (KRA) & Key Performance Indicators (KPI) for Supply Chain Specialist

1. Inventory Management

KRA: Efficiently manage inventory levels to meet demand while minimizing carrying costs.

Short Description: Optimize inventory levels for cost-effective supply chain operations.

• 1. Average Inventory Turnover Rate
• 2. Stock-Out Rate
• 3. Inventory Accuracy
• 4. Fill Rate

2. Supplier Relationship Management

KRA: Develop and maintain strong relationships with suppliers to ensure timely deliveries and quality products.

Short Description: Foster strategic partnerships with suppliers for seamless operations.

• 1. Supplier On-Time Delivery Performance
• 2. Supplier Quality Rating
• 3. Supplier Lead Time Variance
• 4. Cost Savings through Supplier Negotiations

3. Demand Forecasting

KRA: Forecast demand accurately to optimize inventory levels and prevent stockouts.

Short Description: Utilize forecasting models for demand planning and inventory optimization.

• 1. Forecast Accuracy
• 2. Demand Variability Index
• 3. Forecast Bias
• 4. Lost Sales due to Forecasting Errors

4. Logistics Management

KRA: Optimize transportation and distribution processes for timely and cost-effective deliveries.

Short Description: Streamline logistics operations for efficient supply chain flow.

• 1. On-Time Delivery Performance
• 2. Transportation Cost per Unit
• 3. Order Fulfillment Cycle Time
• 4. Warehousing Utilization Efficiency

5. Risk Management

KRA: Identify and mitigate supply chain risks to ensure continuity of operations.

Short Description: Implement risk mitigation strategies for supply chain resilience.

• 1. Supplier Risk Assessment Score
• 2. Business Continuity Plan Effectiveness
• 3. Supply Chain Disruption Response Time
• 4. Cost of Risk Incidents

Real-Time Example of KRA & KPI

Supplier On-Time Delivery Performance

KRA: Ensuring suppliers deliver goods on time as per agreed schedules for uninterrupted production.

• KPI 1: Percentage of On-Time Deliveries
• KPI 2: Supplier Lead Time Variance in Days
• KPI 3: Average Cost of Expedited Deliveries
• KPI 4: Production Downtime due to Late Deliveries

This KPI led to improved production efficiency and reduced costs by 15% through better supplier performance.

Key Takeaways

• KRA defines what needs to be done, whereas KPI measures how well it is done.
• KPIs should always be SMART (Specific, Measurable, Achievable, Relevant, Time-bound).
• Regular tracking and adjustments ensure success in Supply Chain Specialist.

Generate content in this structured format with clear, concise, and measurable KPIs while maintaining professional readability.