“A KPI should be reported within a context or else the meaning is lost.”
Volumes are one of the most widely reported Measure/Metric/KPI in Business Intelligence domain. This is applicable for any industry that has some form of production or trading setup. In a general sense, volumes come into play when physical materials have to be managed and reported.
Volumes are typically reported along with an unit of measure (UOM) of the product (e.g. Widget = 100 pieces) . Sometimes, the UOM might be converted or normalized as per requirements (e.g. Widget = 3 pallets).
- Producing companies include all organizations that are involved right from conceptualization to creation and finally selling a physical product.
- Trading companies are organizations that typically buy and ship (if applicable) from manufacturing companies and sell them to final consumers.
Some example KPI’s with volumes are below. In scenarios where a widget has multiple unit of measures, one should be consistent with a single UOM across all reports.
- Quantity Sold: Total number of widgets sold in the specified Unit of Measure
- Stock In Hand: Quantity of widgets available in a specific location or across locations
- Open Order Quantity: Widgets that are in the pipeline and expected to arrive in near future.