Supply Chain Metrics that Matter: KPMG

As supply chain conditions change, so too should the metrics leaders use to determine success.

A recent survey from KPMG outlined types of metrics that supply chain managers should be prioritizing.

Here are a few from that list (excerpted below).

AI and Automation

Artificial intelligence (AI) and automation are now embedded in core supply chain functions, such as forecasting, procurement, logistics, and more. The tools are helping to optimize processes such as inventory replenishment, route planning, supplier risk management, and transactional workflows (e.g. invoice processing and order management).

As AI evolves from augmentation to orchestration, decision accuracy will likely indicate maturity.  

Metrics to track:

• Forecast accuracy
• AI decision-making accuracy 
• Business value realization from AI decisions
• Automation rate of transactional and planning processes

Human–machine collaboration

For an optimal supply chain, human insight and machine intelligence must work in tandem to enable efficiency, adaptability, and innovation. Organizations that empower their workforce to collaborate with AI and automation will likely have a competitive advantage. Metrics to focus on include how effectively people and technology augment each other. 

Metrics to track:

• Human override frequency in AI-assisted decisions
• Trust and adoption rate of AI systems
• Productivity ratio between human-led and machine-led tasks

Resilience and Total Value

While supply chain resilience remains a fundamental goal, the strategic focus is shifting toward Total Value. This evolution focuses on delivering an optimal customer experience balanced with improved internal performance and turns disruptions into opportunities for enterprise-wide value creation.

Metrics to track:

• Recovery time after risk exposure and disruptions
• Supplier diversification and strategic sourcing agility
• Value realization index:
  • Revenue growth from improved experience
  • Cost savings from performance gains
  • Employee engagement 
  • Innovation adoption

Multimodal supply chain orchestration

Amid frequent disruptions and rising sustainability demands, the ability to flexibly coordinate across transport modes; road, rail, sea, and air, is a critical enabler of both resilience and environmental performance. Therefore, multimodal orchestration helps ensure continuity, cost-efficiency, and carbon reduction. IoT-enabled tracking and integrated data platforms now provide real-time visibility across modal shifts, enabling smarter routing, reduced delays, and optimized emissions.

Metrics to track:

• • On-time transfer rate between modes
  • Transit time variability
  • Modal agility score (ability to switch modes based on disruption or cost)

Discover more metrics.