Supply Chain Metrics Most Teams Aren't Tracking (But Should Be)

Most supply chain teams have their core metrics covered: on-time delivery, fill rates, inventory turnover. But a few less obvious data points often go untracked, and they can tell you a lot about what's actually happening in your operations.

The contributors in this roundup each monitor something that rarely shows up on a standard dashboard. Some look at what happens after a product reaches the customer's door. Others count how many times an item gets physically handled before it ships. If you're wondering whether there are gaps in what you're measuring, their answers are worth a look. For more on evaluating which metrics actually move the needle, see what separates overhyped supply chain technology from real ROI.

Here's what they monitor and why it matters:

• Time-to-First-Activation Measures When a Customer Actually Uses the Product

• Counting How Many Times Each SKU Gets Touched Before It Ships

• Tracking Idle Time Between Process Handoffs

• Calculating Lost Customer Lifetime Value From Stockouts

• Tracking the Gap Between Purchase Orders and Supplier Confirmation

Time-to-First-Activation Measures When a Customer Actually Uses the Product

Since we send out a physical box rather than an electronic download, we track a time-based metric called Time-to-First-Activation. This measures the time from when the scanner marks the box as delivered to when the unit first connects to our server. Most supply chain teams consider a product "delivered" once it reaches the customer's door. We consider it delivered when the customer actually uses it.

Using this metric has changed how we approach hardware design, instructions, and troubleshooting. For example, if customers in one country take around 1 week longer than others to activate their devices, we can quickly see whether the setup is too complex or if there are local connectivity issues. By tracking the "Usage Lag," we've streamlined the setup process, reduced onboarding issues, and lowered support requests before they arise.

Tracking usage across 100+ countries also gives us a clearer view of how easy our products are to use. This helps us refine operations and identify onboarding friction early.

Alex Sarellas, Managing Partner & CEO, PAJ GPS

Counting How Many Times Each SKU Gets Touched Before It Ships

We started paying attention to touches per order (basically how many times a product gets handled from receiving to shipping.) To be fair, it wasn't something we did officially, but we started noticing the same item get received, moved, picked, staged, then moved again before it even ships. We literally had certain SKUs getting touched five, six, seven times for no apparent reason. Thankfully, it was an easy layout fix and we managed to get that down to a standard three.

 Leo Rodriguez, Vice President, River Plate Inc.

Tracking Idle Time Between Process Handoffs

An overlooked metric often is called "time between handoffs". It is neither total delivery time nor warehousing efficiency; rather, it deals with the "quiet gaps" caused by shipment/ order/ or decision waiting for action to occur. These gaps are seldom tracked on dashboards, but they greatly contribute to the overall experience. For example, there may be hours that separate the time an order is confirmed in the system to when the warehouse picks the order, or between the time a product arrives to when it is routed for final delivery.

Tracking these idling times creates a shift in focus from speed to flow. By tracking these gaps, you are no longer pushing teams to work faster independently, but identifying where breakdowns of coordination are occurring. Simply reducing the amount of these irrelevant gaps between hand-offs improved delivery estimates without increasing the amount of future resources needed for delivery. The operation did not increase in volume or speed; it became more consistent. It is this consistency many customers will notice first.

Dora Bloom, Chief Revenue Officer, iotum

Calculating Lost Customer Lifetime Value From Stockouts

Understanding the true "cost of inaction" for inventory stockouts gives you a much better view of what is going on compared to average turnover rate numbers. I began to focus my purchasing strategies more heavily around creating high-priority buffers by calculating how much lost Customer Lifetime Value (CLV) was being incurred from items unavailable. The benefit of using this data is that it will allow you to identify what delays are truly damaging your ability to maintain or build Brand Loyalty. Measuring this metric also ensures that your Supply Chain focuses on maximizing long term retention rather than simply focusing on cost savings through less expensive, but often longer holding, storage options.

Adam New, Principal Owner, The Cash Offer Company

Tracking the Gap Between Purchase Orders and Supplier Confirmation

We have noticed that the one metric which is hardly ever discussed relates to the amount of time that elapses between the issuing of a purchase order and the supplier confirming they are starting to produce that order, which we call "supplier confirmation lag." Most companies typically measure the overall lead time between issuing an order and receiving items from suppliers and rightly so, but there is an opportunity to identify potential delays before they actually occur by measuring the opening window between issuing an order and receiving confirmation from suppliers. At the beginning of 2021, we began tracking this data across our six primary suppliers and discovered that our average confirmation lag time was 11.3 days. As a result, we discovered that two of those suppliers consistently had confirmation lag times exceeding 19 days, which we would not have known otherwise, as the overall lead times still looked acceptable.

Since implementing our confirmation lag tracking plan, we have created a simple threshold system in our reorder system that automatically places a reorder with any supplier whose confirmation lag time exceeds eight days. As a result of this one tweak to our listing system, we experienced a 34.6% reduction in the number of goods we were out of stock on during the first two quarters. Also, confirmation lag time is now a prominent part of our supplier evaluation process and along with price and MOQ, we always require that companies provide their confirmation lag time when evaluating them as potential suppliers before finalizing our decision about working with them.

Matt Little, Founder and Managing Director, Festoon House

The Bottom Line

The metrics these contributors track aren't exotic or difficult to implement. What they share is an eye for the gaps and delays that standard dashboards tend to miss.

A few takeaways:

• Tracking Time-to-First-Activation gives product companies a more accurate signal of customer experience than delivery confirmation alone

• Monitoring touches per order reveals hidden handling inefficiencies that can often be resolved with layout changes rather than new technology

• Measuring time between handoffs shifts focus from individual team speed to cross-functional coordination and flow

• Calculating lost CLV from stockouts reframes inventory decisions around customer retention, not just cost reduction

• Tracking supplier confirmation lag surfaces potential delays before they appear in lead time data, giving teams time to act

For more perspectives on supply chain operations and hiring, visit SCOPE Blog. If you're tracking metrics like these and need the right people to act on them, supply chain placement agencies with deep industry experience can help you find qualified candidates faster.