Percentage of Sales Lost Due to Supply Issues
This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Percentage of Sales Lost Due to Supply Issues. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.
What is Percentage of Sales Lost Due to Supply Issues?
The total dollar value of sales lost due to the supplier being out of stock divided by the total dollar value of customer sales over the same period of time, as a percentage.
Why should Percentage of Sales Lost Due to Supply Issues be measured?
Percentage of Sales Lost Due to Supply Issues measures the company's ability to stock inventory that is in demand from its customers. A high value for this KPI suggests that the company has inaccurate demand forecasting, poor inventory control or sub-par vendor management procedures. Companies that have a high rate of lost sales due to supply issues are not only losing revenue from being out of stock, they are also likely creating dissatisfaction or perhaps even mistrust from their customers due to an inability to supply customers with products when they need them, which can lead to customer attrition.
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