An ERP without clear KPIs is a race car without a speedometer. Running, but no idea where to.
After 14 years of ERP implementations, I've found exactly 7 metrics that every CFO or COO actually cares about. Not the academic ones from textbooks — these are the ones managers curse at when reports are late.
1. Inventory Accuracy
The ratio between what's actually on the shelf and what the system says. Below 95% = problem. Below 85% = disaster.
For a wholesale client in Cairo, we moved this from 78% to 96% in 45 days. Not the system — the cycle-counting discipline. ERP helps you count; it doesn't do magic.
2. Order Fulfillment Cycle Time
From customer order to delivery. In B2B, 24-72 hours is normal. If longer, find the one step that's slow (usually manager approval on discounts).
3. Days Sales Outstanding (DSO)
Days to collect an invoice after issuing it. In Egypt, 45-90 days depending on sector. Above 90 = high sales but no cash.
For a pharma distributor, DSO was 102 days. After automated reminders (email + SMS + weekly manager report), it dropped to 67 days in 6 months. That's 35 days × daily sales = serious liquidity.
4. Return Rate (with reason analysis)
Not just the rate — the reason. ERP groups reasons: quality, pricing error, wrong order, shipping delay. If 40% of returns are "wrong order", the problem is sales, not production.
5. Gross Margin per SKU
Not aggregate margin — per SKU. That's where you find the high-volume item that's actually losing money. An electrical tools client found 12% of their top-sellers had negative margin due to stacked wholesale discounts.
6. OTIF (On Time In Full)
Orders delivered on time AND complete. Global benchmark 90%, Egypt 75% acceptable. Lower = procurement planning or supply chain issue.
7. Cost per Order
Sum all sales/purchasing/warehouse costs, divide by order count. Mid-sized company: 8-25 EGP per order. Higher = extra step in the process (paper approvals, duplicate manual entry).
Bottom line: start with 3
Don't track all seven from day one. Pick the 3 tied to your biggest pain. One client started with Inventory Accuracy + DSO + Gross Margin per SKU — in 4 months, decisions saved 1.8M EGP annually. Not magic, just tracking right.
Need help picking KPIs for your industry? Send us your sector and sales volume — we'll suggest a practical dashboard, not an academic one.