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Business problem

Procurement & Supply

What's on order, when it lands, and how the supplier actually performs.

Metrics

Computable definitions from the KPI Dictionary — every decision switch made explicit, with the formula behind it.

KPIFormulaWhat it answers
Supplier On-Time DeliveryK-12
Supplier OTD=∑s∈S1 ⁣[tsrcpt≤tsprom]∣S∣\text{Supplier OTD} = \frac{\sum_{s \in S} \mathbf{1}\!\left[t^{\mathrm{rcpt}}_{s} \le t^{\mathrm{prom}}_{s}\right]}{\lvert S \rvert}
Did the supplier deliver to your dock by the date they originally committed — at which receipt grain, against which promise, and after how much of the line arrived?

Supplier performance is usually reported as one blended score, and blending is what makes it useless: a supplier that is best in the base on delivery and worst on quality lands mid-table and is never looked at again. The work here keeps delivery, quality and price as three separate numbers, measures on-time against the supplier's original promise rather than the promise as it was later revised, and treats purchase price variance as a quotient of two summed totals on received units rather than an average of per-line variances. The reference build runs a year of simulated purchase-order lines and includes the small-volume guard, because a supplier with eleven lines has not yet told you anything.

Reference builds

Reference builds for this business problem, implementing the definitions above wherever one exists, running over frozen, simulated data. Not a resource and not a case study — no client data, and no client named.

In the references

Where this data lives in each source system. A way into the ERP references, not an index of them — every reference landing lists all of its modules.

The other business problems

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Maintained by Summit Analytics, a supply chain analytics practice. The tools and references are free — the consulting is selective.

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