Diese Kennzahl ist die Summe der längstmöglichen Vorlaufzeiten für jede Phase des Supply-Chain-Zyklus. 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. 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. Examples include cycle-time metrics. 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. 4 août 2014 / Vincent Criton / 0 Comments Aujourd’hui de plus en plus nous sommes dans des schémas complexes. The availability rate is mainly used for retail (stores) and distribution to know its availability rate in-store departments. Indeed, your financial asset is in value, not in quantity. Very few companies have this stock record available per day. This calculation is only made on the active references of the catalog. Attention à ne pas complexifier votre animation avec trop d’indicateurs. What is a Supply Chain Dashboard? Yes, quite possibly the best KPI (Key Performance Indicator) for Supply Chain & Logistics. More ideas on using Supply Chain KPI. I, therefore, recommend that you at least average your stock per week or per month. 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. The next KPI of this particular dashboard is the Carrying Cost of Inventory, followed by Inventory Accuracy and Out Of Stock Items. 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 supply chain business often uses the customer order cycle time metric to gauge its success with this aim. 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. Headquartered in Mexico, Sigma Alimentos is a leading food company with a direct store deliveries business model. 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. Thanks to modern data visualization tools you can create stunning supply chain management dashboards with all your needed KPIs with a few clicks. And just like any other area, supply chain analytics have their own set of the most important KPIs. This calculation is done at the instant T, ideally on the same day. 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. Quels KPI’s pour évaluer l’efficacité de sa Supply Chain ? This particular insight is one of the most critical supply chain KPIs for businesses operating in a multitude of sectors. Purchase full version of Supply Chain Measures + bonus. Agility: The ability to respond to external influences, the ability to respond to marketplace changes to gain or maintain competitive advantage. You can simultaneously manage a service rate on time for orders shipped and a service rate on time for orders delivered on time to manage both the quality of your stock management firstly and the quality of your logistics secondly (order preparation + transport times). 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 example, you can ship 100% of your products ordered by your customer but only deliver 50% within the time requested by your supplier. And if your supply chain is inefficient, ineffective, or fragmented, it could seriously hinder your commercial prospects. 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. Remember: Today, access to your metrics 24/7/365 is really important, what online data analysis tools can guarantee and ensure that your chances of long-term success increase. 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. Billing accuracy is critical to profitability as well as customer satisfaction, so tracking this particular metric will help you spot detrimental trends, improve your overall shipping accuracy, and ultimately, help your business grow. If you have no record, simply take the average between the beginning and end stock of the chosen period. How to Improve Supply Chain KPIs. Want to visualize & track supply chain metrics with ease? In determining your supply chain KPI suite then, the secret is to identify performance elements critical to those with the power to influence them, and develop appropriate KPIs for that audience. For more data-driven wisdom, check out these great dashboard designs that you can get inspiration from. On-time delivery (DOT = Delivery on time). Comme nous l’avons dit précédemment, pour qu’un pilotage soit efficace les KPI doivent être identifiés mais également visibles. The higher the perfect order rate, the better, because this KPI has a direct impact on your customer retention and loyalty levels. Food & beverage (F&B) read more Retrieve the complete list of orders received over the desired period. Top 10 IT & Technology Buzzwords You Won’t Be Able To Avoid In 2021, Top 10 Analytics And Business Intelligence Trends For 2021, Utilize The Effectiveness Of Professional Executive Dashboards & Reports. You need to track the current status of shipments, monitor inventory levels and ensure that all orders you ship are completely accurate. By gaining this level of insight, you stand an excellent chance at decreasing returns, boosting profits, and improving cash flow as a result. Use KPI Library to search for Key Performance Indicators by process and industry, ask help or advice, and read articles written by independent experts. KPI Library | Supply chain. 5 other KPIs for your supply chain. This is the percentage of orders in quantity delivered on time. The shorter the conversion cycle the better, and this invaluable supply chain metric will help you take the right measures to ensure that you can run your business with less money tied up in operations. A Supply Chain Dashboard is a reporting tool used to track supply chain KPIs and metrics in a single display or interface. Keep this service rate at least once a week/month to measure your performance and build a record. This primed and ready for use Microsoft Excel template will assist in monitoring past, present, and future numbers in an expert manner. Cinq autres indicateurs pour votre Supply Chain. We can see the curve flattening out when you win your last percentages. By effectively utilizing their procurement data across all departments, a supply chain analysis can compare product spend across suppliers while analyzing their percentage of contract spend. This is the challenge for all companies dealing with stock. 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. Service Rate Definition : Out of 100 orders received, the matter here is to understand how many orders are delivered on time. 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. Metrics and KPIs are critical in improving a company’s supply chain strategy. 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. I highly recommend avoiding too many metrics at the beginning if you have not yet set up the first ones. Example: Let’s assume that your average stock in 2016 is $1,000,000 and your average daily sale is $5,000 per day. Supply chain metrics are defined by establishing specific parameters which are used in quantifying and defining supply chain performance. A pivotal supply chain KPI, the inventory velocity, or IV, provides a visual snapshot of the percentage of inventory that's projected for consumption within the next period or quarter. a full year) to avoid being impacted by your seasonal fluctuations. While Key Performance Indicators (KPIs) may be reviewed quarterly or monthly, the speed with which supply chain operations occur makes a daily view of more tactical and operational metrics a growing necessity. Le coefficient de rotation des stocks fait partie des indicateursà prendre en compte et dépend directement de l’intensité de l’offre, de la demande et de vos capacités à anticiper les variations sur le marché. If there were an award for “KPI with the longest name,” this one would surely win hands-down. I recommend a one-week period to start. Total Supply Chain Management Cost as Percentage of Sales. Muitas pessoas ficam realmente confusas sobre KPIs ou Indicadores de Desempenho nas operações Logísticas e Cadeia de Suprimentos (Supply Chain). Er ist eine wichtige Kennzahl, da er die Effizienz im gesamten Supply-Chain-Proz… And the answer is… at least one of the two. I strongly recommend working on a value (cost) basis and not on a quantity basis because this stock represents your fixed assets. Il se calcule en divisant le coût d’achat des marchandises vendues par le stock moyen (au coût d’achat) de votre entrep… Claro que eles precisam ser … Calculation: Average stock in value on the last 52 weeks / Total sales x 365 days. Il s’agit du temps moyen nécessaire pour vendre le produit une fois que celui-ci est inscrit au stockage de l’entreprise. Maintaining a consistently solid ROI is the bread and butter of ongoing eCommerce success. When a Black Swan hits, having the right advanced analytics to react to supply chain disruptions is your company’s best defense. Later in this article, I will suggest some rather more comprehensive guidelines, b… Supply chain risk: This may be a tough KPI to develop due to the range of potential risks. However, it will alert you to the future risks of breakage and overstocking. The use of our Supply Chain and Logistics KPI Dashboard programme will help you maintain an overall measure and give you a view of which activities need your attention. Shipping and freighting your items from supplier to warehouse or warehouse to the consumer is vital to the success of your entire operation, and any issue or error can prove harmful with time and investments being wasted. - Wael Safwat, SCMAO. 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. 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. Example: I have 100 products in my catalog, only 70 are available for my customers, so I have the availability of 70/100 = 70%. 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. 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. 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. 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. 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. 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. C’est à ce moment-là que le management visuel fait son entrée. By taking a year, you will know on average how many times the stock rotates over that year. But store, shelf-level out-of-stocks (OOS), the most critical KPI in this supply chain, barely changed. 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. It is recommended to always take a long period of time (e.g. It's the supply chains that are competing." A Supply chain company’s decision to reduce spend must be driven by the data to consolidate suppliers and negotiate procurement contracts company wide. Also called stock life or stock coverage, it is the average number of days that the stock takes to run out. Lead Time for customer and supplier deliveries. The service rate is used in other industries when you do not have access to your customers’ stock information. 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. If you improve your purchase prices, you improve your stock rotation in value (not in quantity). KPI Cubed is a niche consulting company specialising in Supply Chain and Talent Management functions related to FMCG, Retail and Third Party Logistics Services. Pulling data from KPI helps your reverse supply chain system run fast and effectively when embarking on the disposition process. Here is a summary of our top 10 supply chain KPIs we discussed in detail: If you want to track and visualize your supply chain metrics and KPIs with ease, you can try our KPI software for a free 14-day trial! Infelizmente não é uma pergunta fácil. I highly recommend avoiding too many metrics at the beginning if you have not yet set up the first ones. It is pivotal to calculate this KPI in value terms, as large quantities of products can have a significant impact on the total. The metrics can be utilized in the inventory accuracy and turnover metrics, to the inventory-to-sales ratio.

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