6.1) Key performance indicators (KPIs) are used to measure the progress of a business reaching their goals. The success of the business and its activities should be measured to identify problems or possible improvements. I have identified a number of KPIs specific to departments in the supply chain as well as the supply chain as a whole.

KPIs which can be introduced across the sales department are:
• Lost sales to keep a record of which customer orders are not fulfilled.
• Turnover generated by each product in order to make comparisons between the different adhesive and grout types.
• Sales target in order to have a goal to work towards.
• Sales growth measurement, which is important to determine if the product sales are increasing to be able to supply the growing demand.

KPIs which can be introduced across the marketing department are:
• Return on investment in order to determine the revenue that a marketing campaign is making in comparison with the costs to run that campaign.
• Incremental sales which demonstrate the effect that the marketing campaign has on increasing sales.

KPIs which can be introduced across the procurement department are:
• Deliveries which compares the actual delivery date to the promised delivery date of raw materials. Delivery accuracy can then be measured.
• Lead times, which should be monitored to determine delivery dates of raw materials.
• Total cost savings, which measures the amount of money saved on an order by purchasing the material.

A KPI which can be introduced across the scheduling department is:
• Schedule adherence, to ensure production runs as smooth as possible.

A KPI which can be introduced across the forecasting department is:
• Forecasting accuracy, to ensure that the most accurate demand forecasting technique is used.

A KPI which can be introduced across the manufacturing department is: