Hospital supply chain dashboards tend to grow until nobody reads them. Eight numbers, calculated the same way every month, are enough to run the function and to show the board what is happening.
| KPI | How to calculate | Target we use |
|---|---|---|
| Inventory days | Stock value ÷ (12-month consumption ÷ 365) | Pharmacy 25–35 days; consumables 30–45; implants on consignment |
| Stock-out rate | Lines with zero stock when requested ÷ lines requested | < 1% for formulary items; 0 for crash-cart and OT critical list |
| Expiry write-off | Value expired or destroyed ÷ consumption value | < 0.5% pharmacy; < 0.3% consumables |
| Supplier fill rate | Lines delivered complete and on time ÷ lines ordered, by supplier | > 95%; review any supplier below 90% |
| Consignment reconciliation gap | (Billed − scanned) ÷ scanned, monthly | < 1% |
| PO cycle time | Requisition approved → PO issued, median days | < 2 days routine; < 1 day urgent |
| Contract coverage | Spend on contracted items ÷ total addressable spend | > 80% |
| Price variance across sites | Max − min unit price for the same item across sites, weighted by spend | < 3% after harmonisation |
The ones to drop
Number of POs raised (activity, not outcome). Number of vendors (only meaningful as a trend after cleansing). Savings claimed at award (see validating savings). Inventory accuracy from an annual count (monthly cycle counts of the top 200 items tell you more).
Presenting them
One page, eight tiles, twelve-month trend under each, one line of commentary per tile. The Dashboard sheet in the Spend Cube Template is laid out this way. If the board sees the same eight numbers every quarter, supply chain stops being a cost centre nobody understands.