Updated KPIs for Automotive Supply Chain Management now available

Key Performance Indicators (KPIs) are much more than just the numbers you report regularly. They are essential tools helping you to understand the performance of your business allowing you to take action and make critical adjustments to achieve your strategic objectives. They help you to identify deficiencies, measure progress, stay on track and implement continuous improvement.

Odette and AIAG first published “Key Performance Indicators for Global Materials Management and Logistics” in 2006 to eliminate the need for each automotive customer to create its own materials management and logistics KPIs, thereby avoiding confusion and extra administration for suppliers.

An updated version, entitled “Key Performance Indicators for Automotive Supply Chain Management” (LK03) is now available ready for use by OEMs and Suppliers.

As with the original version, the objective of this updated recommendation is to define and promote common indicators and common understanding between partners in order to increase performance and reduce cost in the automotive supply chain. The recommendation is also a vital support for the Global MMOG/LE assessment tool, providing the basis for Chapters 1.2 Objectives, 6.1 Supplier Selection and 6.7 Supplier Assessment.

The new version has been designed to be easier to use.

  • The structure has been adjusted to improve the logical flow
  • KPIs have been categorised and regrouped
  • Objectives, scope and rating rules for indicators and sub-indicators have been revised to provide better guidance to users
  • Attachments and appendices have been modified to ensure actuality and simplification

Companies and automotive associations involved in this update include Audi, Bosch, Continental, GALIA, FiatChrysler, Ford Motor Company, Meridion, Odette Sweden, QAD, SMMT Industry Forum, Stackpole, Turk Traktor and VDA.

LK03 v2 is available to download free of charge