Every company today runs on data – the key to using your data is choosing the right metrics for visibility into your 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. Quels KPI’s pour évaluer l’efficacité de sa Supply Chain ? If you have items with a short shelf life, do this calculation per month, or over the (more complex) shelf life of the product. To find this balance it is therefore essential to set up at least these 2 KPIs. The higher the perfect order rate, the better, because this KPI has a direct impact on your customer retention and loyalty levels. 5 Ways to React to Supply Chain Disruptions in the Food and Beverage Industry. You can calculate this supply chain KPI by subtracting the order delivery date from the day the customer created the purchase order. Celui-ci permet de piloter les KPI aussi bien individuellement que de manière collective. 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. Also, the more stock you have, the less « efficient » it will be. And if your supply chain is inefficient, ineffective, or fragmented, it could seriously hinder your commercial prospects. Je vous déconseille d’appliquer les indicateurs Supply Chain suivants avant d’avoir mis en place les premiers. 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. More ideas on using Supply Chain KPI. The next KPI of this particular dashboard is the Carrying Cost of Inventory, followed by Inventory Accuracy and Out Of Stock Items. C’est à ce moment-là que le management visuel fait son entrée. This is the challenge for all companies dealing with stock. At no level in a function, or cross-functionally though, should anyone need to monitor more than a few KPIs. Yes, quite possibly the best KPI (Key Performance Indicator) for Supply Chain & Logistics. If you improve your purchase prices, you improve your stock rotation in value (not in quantity). KPIs can help identify the weak links in the supply chain so that action can be initiated to enhance performance because the chain is affected by its weakest link, according to Prem Vrat, Ph.D., pro-chancellor and professor of eminence and chief mentor at The Northcap University, in India. Also, if metrics and KPIs indicate a company’s logistics and supply chain operations are consistently meeting required performance levels, a company can decide to set a higher level of performance to aim at. - Wael Safwat, SCMAO. It is recommended to always take a long period of time (e.g. In supermarkets, late orders are automatically refused upon receipt but having these 2 separate indicators allows you to identify if the problem comes from your stock or your delivery. On-time delivery (DOT = Delivery on time). Headquartered in Mexico, Sigma Alimentos is a leading food company with a direct store deliveries business model. This calculation is only made on the active references of the catalog. Muitas pessoas ficam realmente confusas sobre KPIs ou Indicadores de Desempenho nas operações Logísticas e Cadeia de Suprimentos (Supply Chain). 6. Managing Partners: Martin Blumenau, Jakob Rehermann | Trade Register: Berlin-Charlottenburg HRB 144962 B | Tax Identification Number: DE 28 552 2148, News, Insights and Advice for Getting your Data in Shape, BI Blog | Data Visualization & Analytics Blog | datapine. 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. 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 … SCOR Agility metrics include Flexibility and … 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. This KPI provides useful insights about your warehousing operations and helps you optimize your inventory levels, meet customer demands effectively, and reduce risks of excess and outdated inventory. Be careful here to take the same period for stock and sales in the calculation. The table below simply summarizes the calculation on 10 items. Note that if you already have an ERP such as SAP, you can most likely extract the actual stock coverage per item. It is pivotal to calculate this KPI in value terms, as large quantities of products can have a significant impact on the total. 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. The supply chain is essentially the backbone of any business: a living ecosystem that ensures the smooth, efficient, and consistent delivery of a product or service from a supplier to customer. By calculating this often, you'll be able to collect revenue faster and more efficiently, which will help boost your bottom line in the long run. Er ist eine wichtige Kennzahl, da er die Effizienz im gesamten Supply-Chain-Proz… Total Supply Chain Management Cost as Percentage of Sales. Retrieve the complete list of orders received over the desired period. When a Black Swan hits, having the right advanced analytics to react to supply chain disruptions is your company’s best defense. Food & beverage (F&B) read more How to Improve Supply Chain KPIs. Service rate = 100%, service rate on time = 50%. 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. And the answer is… at least one of the two. Calculated by dividing the opening stock by the sales forecast for the following period, the IV is a KPI that will help you optimize your inventory levels, give you a greater chance of meeting consumer demand, and prevent you from wasting money on excess levels of stock. KPI Supply Chain Solutions is a consulting and training provider that has established its niche in the Supply Chain Industry. This particular insight is one of the most critical supply chain KPIs for businesses operating in a multitude of sectors. The challenge for your stock inventory and supply chain management will be to find the right balance between your stock level and the satisfaction of your customer needs (customer availability or service rate). Pilotage Supply Chain avec KPI. 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. 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 speed at which a supply chain provides products to the customer. In this case: average stock = current stock + stock in transit (with or without, it is your choice). Essential Supply Chain KPIs. Be careful not to make your animation too complex with too many KPIs for your supply chain. Lead Time for customer and supplier deliveries. Recent studies suggest that 79% of companies with high-performing supply chains earn a revenue growth greater than the average within their sector. If one supplier can’t keep up, a … Il se calcule en divisant le coût d’achat des marchandises vendues par le stock moyen (au coût d’achat) de votre entrep… Use KPI Library to search for Key Performance Indicators by process and industry, ask help or advice, and read articles written by independent experts. This primed and ready for use Microsoft Excel template will assist in monitoring past, present, and future numbers in an expert manner. Identify in-house or third-party providers that will help collect waste and dispose of assets in a sustainable and cost-effective way. 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. The more stock you purchase, the more you will increase your service level. Supply chain metrics are defined by establishing specific parameters which are used in quantifying and defining supply chain performance. 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. By gaining this level of insight, you stand an excellent chance at decreasing returns, boosting profits, and improving cash flow as a result. This calculation must be done over the last 52 weeks to have a reliable KPI that takes into account seasonal fluctuations as the lower the number of days, the more efficient your stock is. Supply Chain Effectiveness Description: The measure of how well an organisation can move product/services from conception to the customer. KPI Library | Supply chain. By Sandra Durcevic in KPIs, Sep 27th 2018, "It's not the organizations that are competing. By collecting, curating, and analyzing key supply chain metrics you will be able to spot inefficiencies within your ecosystem while capitalizing on your current strengths and establish goals that will help your supply chain scale with the success of your company. For more data-driven wisdom, check out these great dashboard designs that you can get inspiration from. You need to track the current status of shipments, monitor inventory levels and ensure that all orders you ship are completely accurate. 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. By tracking this KPI on a monthly basis, you’ll quickly gain an insight into which items in your inventory are poor performers and which are worth investing in more - gold dust in terms of business-based information. However, it will alert you to the future risks of breakage and overstocking. A Supply Chain Dashboard is a reporting tool used to track supply chain KPIs and metrics in a single display or interface. Discontinued products and new products not yet in stock are excluded. A higher DSO level demonstrates that a company is selling its product to customers on credit and taking longer to collect revenue in a tangible sense, which can stunt cash flow and minimize profits in the grand scheme of things. Our graph below summarizes this principle. Supply Chain 255 . KPI Library is a community for performance management professionals. Theoretically, to meet 100% of your customer needs all the time, and to face all possibilities (delays, strikes, quality problems, meteorite…), you would need to have infinite stock. The goal in this example is to avoid wasting money, retain customers, and define the stability of a business. Ideally, you should average your stock day by day over the targeted timeframe. 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. Instead of using past sales, you can use future sales forecasts to estimate your future inventory turnover. For example, if you have a big peak of sales for Christmas, you will have a lot of stock before with few sales (many days of stock) before the peak then many sales and few stocks after the peak. Very few companies have this stock record available per day. Essentially, a low, or healthy, DSO number means that it takes a business fewer days to collect its accounts receivable. If there were an award for “KPI with the longest name,” this one would surely win hands-down. Infelizmente não é uma pergunta fácil. Inventory velocity is a key supply chain KPI that reveals the percentage of inventory that’s estimated to finish during a given period. A supply chain dashboard provides an at-a-glance window into your operations and enables you to manage all those moving parts. 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. Comme nous l’avons dit précédemment, pour qu’un pilotage soit efficace les KPI doivent être identifiés mais également visibles. This valuable KPI can give businesses a lot of key information about various parts of the supply chain. 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 service rate is used in other industries when you do not have access to your customers’ stock information. Working with three core ratios - the days of inventory (DOI), the days of payables (DOP), and the days of receivables (DOR) - the cash-to-cash time cycle KPI visualizes the period required between the moment a business pays cash to its suppliers and the moment it receives cash from its customers. Der Lagerumschlag gibt an, wie häufig der gesamte Lagerbestand in einem bestimmten Zeitraum verkauft wird. That said, here we’re going to look at the top 10 supply chain metrics that will help you, and your business, work toward a bright and prosperous future. What is a Supply Chain Dashboard? Claro que eles precisam ser … Here is how freight bill accuracy is calculated: (error-free freight bills / total freight bills) * 100. Be careful not to make your animation too complex with too many KPIs for your supply chain. Consulting services include Supply Chain Optimization & Integration, Business Process Management for B2B and A2A, master data management, tender management and troubleshooting. Pulling data from KPI helps your reverse supply chain system run fast and effectively when embarking on the disposition process. But this curve is unfortunately not linear (not straight). I recommend a one-week period to start. Maintaining a consistently solid ROI is the bread and butter of ongoing eCommerce success. By taking a year, you will know on average how many times the stock rotates over that year. However, despite its lengthy moniker, total supply chain management cost as percentage of sales is one of the most common financial KPIs used by supply chain organisations. Concerning the continual growth, evolution, development, and success of your company’s supply, fulfillment, and delivery efforts, supply chain performance metrics are the most invaluable tools available at your fingertips.
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