Traditional supply chain metrics like on-time, in-full (OTIF) delivery and landed cost are no longer sufficient to capture the complexity and strategic impact of today’s global supply chains. Inspired by the data-driven “Moneyball” mindset, a new performance model is emerging, one that measures not just execution, but contribution to growth and risk mitigation.
Outgrowing Operational Benchmarks
For many supply chain executives, performance dashboards remain anchored in familiar territory – on-time, in-full delivery rates (OTIF), transportation costs, and warehouse throughput. These metrics are reliable, operationally relevant, and historically easy to benchmark. But they tell only part of the story.
Speaking at the 2025 Gartner/Xpo Symposium in Orlando, Al Mendoza, Business Consulting Principal at EY, made a pointed observation: “We traditionally still measure supply chain in a way that really doesn’t look at the growth and innovation agendas.” Despite digital investments and post-pandemic elevation of the supply chain’s profile, Mendoza said the majority of C-suites still categorize the function as a cost center.
Mendoza cautioned that unless supply chain leaders update their measurement frameworks, they risk being left out of strategic planning and investment decisions. “If you only measure what’s easy to track,” he said, “you’ll understate your contribution to the business.”
Building a Value-Based Scorecard
Inspired by the Moneyball philosophy, Mendoza’s argument calls for a new kind of supply chain scorecard—one that reflects not just operational performance but strategic contribution.
1. Core Operational Performance
Still essential—but now foundational, not defining.
- OTIF (On-Time In-Full): Measures delivery reliability.
- Cost-to-Serve: Total cost per unit delivered.
- Inventory Turns: Measures capital efficiency.
- Forecast Accuracy: A proxy for planning effectiveness.
These remain the baseline for supply chain reliability, but they don’t tell the full story of enterprise value.
2. Innovation and Agility
Captures how the supply chain drives business responsiveness and product innovation.
- Time-to-Market for New Products: Tracks cycle time from concept to commercial availability.
- Innovation Sourcing Index: % of spend with suppliers contributing to product or process innovation.
- Flex Capacity Readiness: Time and cost to scale or pivot in response to demand shifts.
These KPIs help CSCOs show how their teams support R&D and product development functions.
3. Ecosystem Resilience
Assesses risk tolerance and response capability across the extended network.
- Tier-2 and Tier-3 Supplier Visibility Score: Measures depth of transparency.
- Disruption Response Time: Time to reroute, replace, or recover from an event.
- Digitization Rate: % of supplier transactions handled digitally.
- Compliance Hit Rate: Share of shipments meeting regulatory and ESG standards.
This layer supports risk management discussions with CFOs, boards, and compliance teams.
4. Customer Value Impact
Ties supply chain performance directly to customer experience.
- Customer Delivery NPS: Net Promoter Score on fulfillment experience.
- Order Accuracy Rate: Measures fulfillment quality from the customer’s view.
- Customer Complaint Resolution Time: Proxy for service agility.
- Service-Driven Revenue Impact: Uplift tied to premium or differentiated logistics services.
When communicated effectively, these KPIs reinforce the idea that supply chain is central to brand equity and loyalty, not just backend execution.
Communicating Value to Leadership
According to Mendoza, the burden of changing the narrative rests with CSCOs. “It is imperative that the chief supply chain officer can really articulate that story,” he said. Yet many supply chain leaders still frame their reports in operational terms, while their peers speak in revenue, market share, and EBIT.
To bridge the gap, CSCOs must:
- Translate technical metrics into business impact. For example, show how improved forecast accuracy reduces working capital, or how a shorter time-to-market boosts early-cycle revenue capture.
- Co-own KPIs with other functions. Tie supply chain outcomes to sales, marketing, and product KPIs—especially when discussing fulfillment performance or launch timelines.
- Present KPIs in context. Use real examples, such as navigating a tariff shock or supplier disruption, to demonstrate how layered metrics supported better decision-making.
- Invest in storytelling skills. Mendoza’s emphasis on “proof, not hypothesis” applies not just to data, but to communication. The numbers need a narrative to land with executive audiences.
Reframing Supply Chain as a Strategic Asset
As operational complexity grows and expectations rise, supply chain leaders must be prepared to demonstrate impact in the language of business outcomes. By integrating innovation, resilience, and customer value into performance measurement, CSCOs can move beyond cost containment and position their function as a driver of competitive advantage. The challenge now is to embed this broader view into boardroom discussions – consistently, credibly, and with clarity.
