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Impact of Supplier Reliability on Working Capital

Purpose -

Measures the financial impact of unreliable suppliers on working capital management.

Operational Definition -

(Inventory Buffer + Expedited Costs + Lost Sales) / Working Capital * 100

Type of Metrics -

KPI

Function -

Finance

Associate Function -

Finance

Desired Trend -

Lower the better

Recommended Frequency - 

Quarterly

External References -

https://sievo.com/blog/procurement-kpis

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