Supply Chain Analytics: 5 Metrics That Predict Business Health
- Cycle Time, Fill Rate, Cost per Order, Inventory Turns, and Delivery Accuracy are the 5 gold‑standard metrics.
- Tracking them with EdgeOS in real‑time turns data into a predictive health dashboard.
- These metrics help Indian e‑commerce players curb COD delays, reduce NDRs, and optimize Dark Store Mesh operations.
Introduction
In tier‑2 and tier‑3 Indian cities—think Guwahati, Pune, and Bhopal—e‑commerce growth is outpacing traditional retail. Yet, despite the surge, many brands still wrestle with COD bottlenecks, RTO spikes, and inventory hoarding. The solution lies not in more warehouses, but in data‑driven supply‑chain analytics. By measuring the right KPIs, companies can foresee health dips before they manifest as lost sales or unhappy customers.
1. Cycle Time: From Order to Delivery
What It Is
The elapsed time from order placement to final delivery.
| City (India) | Avg. Cycle Time (days) | Benchmark (Industry) |
|---|---|---|
| Mumbai | 2.1 | ≤ 2.0 |
| Bangalore | 1.8 | ≤ 1.7 |
| Guwahati | 3.4 | ≤ 3.0 |
Problem‑Solution Matrix
| Problem | Root Cause | Edgistify Solution |
|---|---|---|
| Long cycle in Guwahati | Sub‑optimal dark‑store coverage | Deploy Dark Store Mesh to local hubs |
| Bottleneck at Mumbai hub | Congested sorting lanes | EdgeOS real‑time lane monitoring |
2. Fill Rate: Order Accuracy
Definition
Percentage of customer orders that are shipped in full without stock‑outs.
Formula: (Total items shipped / Total items ordered) × 100
| Metric | Target | Reality | Gap |
|---|---|---|---|
| Fill Rate | 98 % | 94 % | 4 % |
Why It Matters
A 1 % drop in fill rate can cost ₹5 Lakh per month in returns and dissatisfied customers.
Edgistify EdgeOS Feature
- Predictive Stocking : Uses AI to forecast demand at the SKU level, preventing stock‑outs before they happen.
3. Cost per Order (CPO)
Breakdown
| Cost Component | % of CPO |
|---|---|
| Transportation | 45 % |
| Handling | 20 % |
| Packaging | 15 % |
| Returns (RTO) | 10 % |
| Others | 10 % |
Benchmark
- Target CPO : ₹350
- Current CPO : ₹410
Optimisation
| Strategy | Impact |
|---|---|
| Route optimisation via EdgeOS | ↓ 12 % |
| Consolidated dark‑store deliveries | ↓ 8 % |
| Dynamic pricing for COD | ↓ 5 % |
4. Inventory Turns
Calculation
Annual Cost of Goods Sold / Average Inventory Value
| City | Inventory Turns | Industry Avg |
|---|---|---|
| Mumbai | 4.2 | 5.0 |
| Bangalore | 5.6 | 5.0 |
| Guwahati | 3.1 | 4.5 |
Insight
Low turns in Guwahati indicate over‑stocking due to inaccurate demand signals.
Fix
- NDR Management : Identify Non‑Deliverable Returns early and adjust safety stock accordingly.
5. Delivery Accuracy
Definition
% of deliveries that arrive on the promised date/time window.
| City | Accuracy % | Target |
|---|---|---|
| Mumbai | 88 % | 92 % |
| Bangalore | 93 % | 92 % |
| Guwahati | 75 % | 92 % |
Why It Drives Loyalty
Customers in tier‑3 markets exhibit a higher COD preference; late deliveries trigger RTO and lower repeat purchase rates.
EdgeOS Advantage
- Real‑time ETA updates : Sync with local couriers (Delhivery, Shadowfax) to adjust routes on the fly.
Integrating Edgistify Into Your Analytics Stack
- EdgeOS : Central dashboard that aggregates all five metrics in real‑time.
- Dark Store Mesh : Optimises last‑mile coverage for cities with high COD/ RTO.
- NDR Management : Detects return patterns that signal inventory misalignments.
By embedding these tools, your e‑commerce operation transforms from reactive to predictive—ensuring that every metric is a lever for growth, not a warning sign.
Conclusion
Supply chain health in India’s fast‑moving e‑commerce arena is no longer a by‑product of scale; it is a function of precision. Track Cycle Time, Fill Rate, CPO, Inventory Turns, and Delivery Accuracy with the help of Edgistify’s EdgeOS, Dark Store Mesh, and NDR Management. The result? Lower costs, higher customer satisfaction, and a resilient logistics backbone ready for the next festive surge.
Frequently Asked Questions
- 1. What is the best way to reduce Cycle Time in tier‑3 cities?
Deploy localized dark‑store hubs and use EdgeOS for route optimisation.
- 2. How can I improve Fill Rate without increasing inventory costs?
Leverage predictive stocking via EdgeOS and adjust safety stock based on SKU velocity.
- 3. Why is Delivery Accuracy critical for COD‑heavy markets?
Late deliveries trigger RTO, which erodes trust and increases returns, especially where COD is preferred.
- 4. Can NDR Management help lower Inventory Turns?
Yes—by identifying patterns in returns, you can reduce over‑stocking and improve turnover.
- 5. What is the impact of integrating Dark Store Mesh on my cost per order?
Typical reduction of 8‑12 % in transportation and handling costs, leading to a lower CPO.