KPI
is a measurable value used to assess progress towards a business goal. KPI stands for Key Performance Indicator. Examples include on-time delivery, stock accuracy and the time needed to process an order.
Companies use KPIs to focus attention on results that matter. A useful KPI has a clear definition, an owner and a relevant comparison or target. However, too many measures or poorly chosen targets can distract teams and encourage the wrong behaviour.
An ERP system can calculate KPIs from sales, production, service and financial records. It can show results over time and allow teams to review the activity behind them. This helps managers assess progress and identify where a process needs improvement.
