The Gartner Supply

Chain Hierarchy of
Metrics Benchmarking
for Retail

The Gartner Hierarchy of Supply Chain Metrics has long

been regarded as the industry standard for end-to-end
supply chain performance measurement. Now Gartner
has translated this framework into a dynamic benchmark
database that enables you to compare key supply chain
performance metrics with your peers. Unlike other
benchmarking methodologies that compare metrics in
isolation, the Gartner benchmarking methodology looks
at the interdependencies between metrics to identify
improvement opportunities and make better business
trade-offs.

The Gartner supply chain benchmarking database

includes 17 metrics across seven core process areas
spanning multiple retail segments and geographies.
Our research team will analyze your metrics and provide
you with a customized report rating your performance
against industry peers to identify areas of leadership
and opportunities for improvement.
Sample Output
7 Core Process Areas 6 Retail Segments
Above Average
Average
Demand
Forecast
1. Shopper Fulfillment 1. D
 epartment Stores & Mass
Below Average
Error Merchandisers
2. Supplier Perfect Order
2. G
 rocery, Drug and Convenience
3. Outbound Perfect Order
Shopper 3. S
 pecialty – Homeware
Fulfillment
SCM Cost
4. Inventory Management
& Home Improvement
5. Demand Planning
4. S
 pecialty – Fashion, Apparel
FE
Inventory Days FG
AP
6. S
 upply Chain and Footwear
Obsolescence Inventory
Management Costs
5. S
 pecialty – Electronics,
7. R
 eturns Performance Office and Media
Fulfilment
Supplier
On-Time
Supplier
Quality
On Time
to Store
Outbound
Service Level
From Primary 6. Specialty – Other
Source

Store

Benchmarking Best Practices

On-Shelf E-Commerce Returns Warehouse/ Transportation
Multichannel
Availability Fill Rate Effectiveness DC Cost Cost
Execution

n
E
 xcellence is a balancing act.
n
U
 nderstand interdependencies and trade-offs between metrics.

Retail Operational Metrics n

S
 tart with what your customer values. Optimize the whole, not
the parts.
n
On-Shelf Availability n
Days of Finished Goods n
S
 egment and measure your multiple supply chains. The metrics
are the same — it’s the targets that differ by segments.
n
E-Commerce Fill Rate n
Inventory Obsolescence,
Spoilage and Shrinkage n
B
 enchmarks should not be used as targets. They can be useful
n
Store Online Order Execution
Per Year (% of Inventory as one of the inputs, directionally, to set improvement targets.
(In Full and On-Time)
Asset Value) n
Implementing consistent metrics should be approached as a
n
Line Items Delivered (In Full
Demand Forecasting Error multiyear project.
and On Time)
n

n
Supplier Receipts Passing
n
 otal Transportation Costs
T
Quality Standards (% of Gross Sales)
 arehousing and
W
What other industries are saying about
On Time to Store
n

the benchmarking program

n

Distribution Center
n
Outbound Service Level Operating Costs “This is extremely helpful for us, and I would say
n
Supplier to Customer (Drop Ship) (% of Gross Sales) possibly the most valuable benchmarking exercise
n
DC to Customer n
Fulfillment Center Costs for supply chain that we have seen to date.”
n
Fulfillment Executed From n
Returns Effectiveness Supply chain executive from a global firm

Primary Source
What sets Gartner supply
chain benchmarking apart?
Focus on end-to-end supply chain performance
measurement and the interdependencies between key
metrics rather than benchmarking isolated metrics

Based on the Gartner Hierarchy of Supply Chain

Metrics model — a de facto industry standard for
measuring end-to-end supply chain health

Custom report prepared by our expert supply chain

analysts with key observations and improvement
areas to consider

How it works
n
Familiarize yourself with Gartner research and benchmarking
best practices
n
Complete and submit our supply chain benchmark questionnaire
n
Analyst team prepares customized benchmarking report
and key observations and potential areas to improve

For more information, please contact

[email protected] or your
Gartner representative.

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