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The Hidden Cost of Poor Supplier Performance: A ₹50 Lakh Problem

When Supplier ABC consistently delivers late, it's not just an inconvenience—it's a massive financial drain. Discover how tracking supplier fill rates and delivery performance can save millions in lost sales and operational inefficiencies.

FilFlo Operations Team
September 18, 2024
6 min read
1,800 words
Supplier Performance Tracking Dashboard

The Supplier Performance Crisis

The Shocking Reality

Fill Rate:65%
On-time Delivery:72%
Average Delay:8.5 days
Annual Impact:₹47 lakhs

Across Indian businesses, poor supplier performance is silently draining profits. A recent study of 500+ companies revealed that supplier reliability issues cost businesses an average of ₹35-60 lakhs annually through stockouts, emergency procurement, and operational inefficiencies.

35%
of businesses lack real-time supplier visibility
₹25L
average annual loss from stockouts
65%
rely on manual supplier tracking

How FilFlo Tracks Purchase Order Fulfillment

Key Metrics We Monitor

Fill Rate %

Orders completely fulfilled vs. ordered

On-Time Delivery %

Deliveries within promised timeframe

Turn-Around Time

Average days from PO to delivery

Quality Score

Defect rates and return metrics

Automated Alert System

🔴Critical: Fill rate below 70%
🟠Warning: 3+ late deliveries
🟡Advisory: Performance trending down
Positive: Above-benchmark performance

Case Study: Electronics Retailer Transformation

Before FilFlo

  • • Manual Excel tracking
  • • Weekly supplier reviews
  • • 18% stockout rate
  • • ₹35L emergency procurement costs
  • • 156 hours monthly on supplier issues

After FilFlo (6 months)

  • • Real-time automated tracking
  • • Daily performance updates
  • • 4% stockout rate (78% improvement)
  • • ₹8L emergency costs (77% savings)
  • • 32 hours monthly (80% reduction)
Total Annual Savings: ₹42 lakhs
ROI achieved in just 4 months

Calculate Your Supplier Performance ROI

Investment (Annual)

FilFlo Platform:₹6 lakhs
Implementation:₹2 lakhs
Total:₹8 lakhs

Savings (Annual)

Reduced stockouts:₹18 lakhs
Emergency procurement:₹12 lakhs
Operational efficiency:₹8 lakhs
Total:₹38 lakhs
Net ROI: 475%
Payback period: 3 months

Start Tracking Your Supplier Performance Today

📊

Step 1: Audit

Assess current supplier performance manually

🎯

Step 2: Implement

Set up automated tracking and alerts

📈

Step 3: Optimize

Use insights to improve supplier relationships

Ready to Track Supplier Performance?

Don't let poor suppliers cost you lakhs. See how FilFlo can transform your supplier management.