Author:
Agnes Schliebitz-Ponthus
Changed on:
7 July 2025
| Metric | Gartner Description |
| Demand Forecast Accuracy | The difference between forecast and actual demand |
| Perfect Order (OTIF) | An order that is complete, accurate, on time, and in perfect condition |
| Supply Chain Management (SCM) Total Cost | All fixed and variable costs associated with end-to-end supply chain operations, including direct purchasing operating cost, manufacturing operating cost, transportation cost, warehouse/distribution center operating cost, inventory holding cost, and customer service operating costs, taken as a percent of revenue |
| Cash-to- Cash Cycle Time | The length of time between when a company spends cash to buy raw material to the time cash flows back into the company from its customers; includes accounts payable (AP; aka days payables outstanding [DPO]), total inventory days and accounts receivable (AR; aka days sales outstanding [DSO]). |
| Inventory Total | Total inventory days of supply, measured as the sum of quarterly average raw material, wip, and finished goods |
| Supplier Quality | Percentage of supplier receipts that passed quality standards |
| Supplier On Time | Percentage of supplier receipts that were received on time |
| RM Inventory | Raw materials inventory |
| Purchase Costs | Overhead and operating costs of the procurement team |
| Perfect Order Detail | Component breakdown of total perfect order work in progress, and finished goods inventory |
| WIP and FG Inventory | Work in progress and finished goods inventory |
| Plant Utilization | The total actual annual utilization as a percent of maximum annual capacity |
| Production Schedule Variance | The difference between forecast and actual production items |
| Order Cycle Time | Time from the receipt of an order from a customer to the receipt of the product by the customer |
| Cost Detail | Component breakdown of total SCM cost |
| Tool | Value | Tool Examples |
| Demand Forecasting | Increase forecast accuracy with digital demand signals (stock availability checks). | RelexToolsgroup |
| PIM | Prioritize product information updates based on transactional data displayed in the PIM.
| Akeneo |
| Commerce Search | Optimize search results based on inventory availability data to increase conversions. | AlgoliaConstructor |
| Ad Platform | Optimize ad spend to maximize sell-through based on inventory availability data and stop wasting ad spend on out-of-stock items. | Ruller Analytics |
| Pricing Engine | Optimize pricing recommendations based on inventory availability data to increase sales and margins. | Quick Lizard |