Managing all the moving parts in your supply chain can be a logistical nightmare unless you have access to the right KPIs and metrics. Every business, regardless of service, product, or sector strives to achieve the best return on investment (ROI) for each and every commercial activity it undertakes. Pilotage Supply Chain avec KPI. Il s’agit du temps moyen nécessaire pour vendre le produit une fois que celui-ci est inscrit au stockage de l’entreprise. The return reason supply chain metric offers an astute insight into the various motives causing your customers and clients to return their orders – a piece of information that is priceless to the ongoing success of an eCommerce business. Lead Time for customer and supplier deliveries. One of the most superbly helpful supply chain KPI available today focuses on logistics KPIs and helps a business understand the number of times its entire inventory has been sold over a certain time frame: an incredible indicator of efficient production planning, process strategy, fulfillment abilities, and marketing and sales management. Indeed, your financial asset is in value, not in quantity. In %: out of 100 products, how many are available to the customer (in-store, warehouse…). By Sandra Durcevic in KPIs, Sep 27th 2018, "It's not the organizations that are competing. Retrieve the complete list of orders received over the desired period. And if your supply chain is inefficient, ineffective, or fragmented, it could seriously hinder your commercial prospects. What is a Supply Chain Dashboard? SCOR Agility metrics include Flexibility and … This is the percentage of orders in quantity delivered on time. Essential Supply Chain KPIs. You need to track the current status of shipments, monitor inventory levels and ensure that all orders you ship are completely accurate. While an argument exists that only customer-facing platforms should have top priority, it’s equally essential to track the business-to-business portal uptime. Quality performance rating: This KPI can show an overall supply base quality rating, but specific quality KPIs at the supplier level are critical to measure specific performance. Examples include cycle-time metrics. Recent studies suggest that 79% of companies with high-performing supply chains earn a revenue growth greater than the average within their sector. People love to use buzzwords in the tech industry, so check out our list of the top 10 technology buzzwords that you won’t be able to avoid in 2021. Claro que eles precisam ser … Service Rate Definition : Out of 100 orders received, the matter here is to understand how many orders are delivered on time. 5 Ways to React to Supply Chain Disruptions in the Food and Beverage Industry. There's no denying it: optimal supply chain management conducted in a continually consistent, strategic, and data-driven manner will yield incredibly fruitful long-term results - the kind that will help your business evolve and scale over time. If stock rotation is extremely low, it is likely that you do not have enough stock and therefore, risks of shortage increase. While this may not be the most panoramic or all-encompassing of supply chain metrics, inventory days of supply is particularly useful as it will give you a fairly accurate calculation of the number of days it would take you to run out of stock if it wasn’t replenished. Your stock is essential to your commercial operation which is why tracking your inventory through a central nerve center will make sure that every supply chain effort and initiative improves the way you run your business as opposed to hindering it. Calculation: Average stock in value on the last 52 weeks / Total sales x 365 days. A Supply Chain Dashboard is a reporting tool used to track supply chain KPIs and metrics in a single display or interface. The next KPI of this particular dashboard is the Carrying Cost of Inventory, followed by Inventory Accuracy and Out Of Stock Items. One of our most powerful business dashboards, the supply chain dashboard boasts a digestible, functional, and visual representation of all key areas of supply chain performance, from inventory accuracy and turnover to the inventory-to-sales ratio. An excellent indicator of how long you may need to ship a particular type of order to a client, customer, or partner, this KPI will allow you to set a benchmark shipping time relative to each product which, in turn, will allow you to optimize your shipping and delivery processes, reducing turnover time, and boosting customer satisfaction levels. Identify in-house or third-party providers that will help collect waste and dispose of assets in a sustainable and cost-effective way. The metrics can be utilized in the inventory accuracy and turnover metrics, to the inventory-to-sales ratio. Quais usar, quantos usar? Cinq autres indicateurs pour votre Supply Chain. KPI Cubed is a niche consulting company specialising in Supply Chain and Talent Management functions related to FMCG, Retail and Third Party Logistics Services. I recommend a one-week period to start. Pulling data from KPI helps your reverse supply chain system run fast and effectively when embarking on the disposition process. .. les organisations supply chain regroupent un nombre d’acteurs important … Selecting the right key performance indicators for supply chain analytics isn’t an exact science by any means. Thanks to modern data visualization tools you can create stunning supply chain management dashboards with all your needed KPIs with a few clicks. Your objective will, therefore, be to find the right balance between customer availability and stock rotation. The goal in this example is to avoid wasting money, retain customers, and define the stability of a business. The service rate is used in other industries when you do not have access to your customers’ stock information. Die sogenannte Supply-Chain-Cycle Time ist eine umfassende Kennzahl dafür, wie lange die Abwicklung eines Kundenauftrags dauern würde, wenn alle Bestände zum Zeitpunkt der Auftragserteilung bei null wären. Presented in a digestible pie chart-style format with a key showcasing the primary reasons for return, you will be able to assess your areas of weakness, analyze the quality of critical areas of your supply chain process, and make the kind of improvements that will enhance not only your reputation but your overall level of service significantly. Inventory velocity is a key supply chain KPI that reveals the percentage of inventory that’s estimated to finish during a given period. Which ones to use?… How many to use?Sadly, it’s not such an easy question to answer.Of course, they need to be SMART—Specific, Measurable, Achievable, Relevant, and Time-phased—but this may too rudimentary a set of rules to ensure KPIs are useful. a full year) to avoid being impacted by your seasonal fluctuations. If you want to go further and learn how to set up the best KPI for your Supply Chain & Logistics, track your performance on Dashboard and have access to exclusive Excel templates, you can join our new online course to Measure & Track your SCM performance here, Copyright © 2020 AbcSupplyChain LTD | Legal & Terms | Contact, new online course to Measure & Track your SCM performance here. Note that if you already have an ERP such as SAP, you can most likely extract the actual stock coverage per item. It is calculated by dividing the average inventory on hand (as value) by the average monthly demand (as value) and then multiplying it by thirty, when measuring on a monthly basis. Celui-ci permet de piloter les KPI aussi bien individuellement que de manière collective. This primed and ready for use Microsoft Excel template will assist in monitoring past, present, and future numbers in an expert manner. The availability rate is the % of products available at a given time T while the service rate is the ratio of orders delivered over time to the total number of orders. Supply chain metrics are defined by establishing specific parameters which are used in quantifying and defining supply chain performance. Supply chain risk: This may be a tough KPI to develop due to the range of potential risks. By tracking these critical supply chain performance metrics in one initiative space, you will be able to implement initiatives that not only hold maximum value but will also ensure the smooth running and perpetual improvements of your supply chain processes, ensuring that every single cog in the wheel is turning to maximum efficiency - which of course, is priceless. A final parcel KPI supply chain strategy should also monitor the total uptime of online tracking systems. 6. Supply Chain 255 . Supply Chain Effectiveness Description: The measure of how well an organisation can move product/services from conception to the customer. This valuable KPI can give businesses a lot of key information about various parts of the supply chain. Use KPI Library to search for Key Performance Indicators by process and industry, ask help or advice, and read articles written by independent experts. By calculating your on-time shipping rate and comparing it to other competitors within your industry, you will be able to create a clear management reporting practice, see where you stand, and take the appropriate action to improve it over time - this will result in a boost in brand authority as well as an increased bottom line - so it’s important. Supply chain is a wide concept that aims at putting to use several resources like people, technology, organizations in such a manner that it facilitates movement … This particular insight is one of the most critical supply chain KPIs for businesses operating in a multitude of sectors. Very few companies have this stock record available per day. Ideally, you should average your stock day by day over the targeted timeframe. A supply chain business often uses the customer order cycle time metric to gauge its success with this aim. The perfect order rate measures the success of your ability to deliver orders incident-free, which will ultimately help you iron out issues such as inaccuracies, damages, delays, and inventory losses. The days sales outstanding (DSO) KPI measures how swiftly you are able to collect or generate revenue from your customers. If you improve your purchase prices, you improve your stock rotation in value (not in quantity). Later in this article, I will suggest some rather more comprehensive guidelines, b… Purchase full version of Supply Chain Measures + bonus. Be careful here to take the same period for stock and sales in the calculation. And the answer is… at least one of the two. In the example below, we have collected data focusing on inventory metrics: Inventory-to-Sales ratio, which you can combine with the Inventory Turnover, and clearly see the financial stability of your business. A supply chain dashboard provides an at-a-glance window into your operations and enables you to manage all those moving parts. In supply chain metrics, the GMROI offers a clear representation of the gross profit gained for every AED (or $, £, €, ₺) of the average investment made in your inventory: a calculation achieved by dividing the gross profit by the average inventory investment. You can explore our supply chain management dashboard in greater detail here. Comme nous l’avons dit précédemment, pour qu’un pilotage soit efficace les KPI doivent être identifiés mais également visibles. Walmart and Amazon each have tens of thousands of suppliers, and it’s their prerogative to get them firing on all cylinders through a proactive supply chain strategy and tighter supply chain integration. The availability rate is mainly used for retail (stores) and distribution to know its availability rate in-store departments. By tracking, analyzing, and understanding this stream data on a regular basis, you will be able to prepare for, and avoid, any stock-based calamities in an emergency situation, saving your reputation and cash flow in the process. By gaining this level of insight, you stand an excellent chance at decreasing returns, boosting profits, and improving cash flow as a result. Keep this service rate at least once a week/month to measure your performance and build a record.
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