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Supply Chain Graphic of the Week: New Direct to Consumer Operating Metrics


New Operating Model Needs New Set of Supply Chain KPIs


Nov. 11, 2021



The general trend of consumer goods embracing direct-to-consumer (DTC) strategies  was greatly accelerated by the virus pandemic, as for many brand companies a significant  percentage of their retail channels were forced close for several monthis.


But there's a huge difference in shipping to consumers versus shipping to retail DCs. And that means a new set of supply chain-related metrics must be created and tracked.


At the recent Gartner all-virtual Supply Chain Symposium, analyst Simon Baileyt did a session on how to succees in DTC, which included the chart below with a recommended set of new KPIs:



The tiers simply segrate the new metrics by level importance.


There's a few things we would add, such as returns costs, percent of orders shipped on time, etc., but this is a decent enough place to start.


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