The Most Important Distribution Center Metrics to Track and Understand

Cerasis

Throughout the supply chain, the use of metrics to track and understand processes provides an invaluable resource for ensuring increased production and customer satisfaction. Additionally, the use of metrics fosters positive relationships with coworkers and adherence to rulesets and best practices for the respective third-party logistics provider (3PL). What Distribution Center Metrics Need Tracking? Monitor Warehouse Capacity. Identify Peaks in Warehouse Capacity.

Modern Metrics

synchrono

Given the more customer-centric demand-driven model – coupled with greater access to information – the metrics that manufacturers monitor to make improvements in operations become more focused and actionable. Inventory Turns, On-time Delivery and Fill Rate provide an overall indication of Operations and Supply Chain health, while other metrics such as Schedule Adherence, Supplier Quality and Yield provide more localized insight.

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Time for a Supply Chain Metrics Cleaning

Logility

Ask yourself, “Are your supply chain metrics bogging you down?” ” To manage a supply chain containing complex dependencies between teams, departments and partner companies across international boundaries requires a rich set of metrics. However, companies often have too many independent metrics that can cause conflicts amongst competing supply chain functions. Functionally isolated metrics lead to sub-optimized supply chain performance.

Where are you on your capacity planning journey?

Kinaxis

by Bill DuBois Balancing capacity can be as challenging as walking a tight rope. Not enough capacity and you lose balance when it comes to delivery and customer satisfaction. Too much capacity and you lose your balance when it comes to costs and margins. All companies are walking this fine line with capacity planning , but some are continuously waving their arms trying to stay upright, while others have secured their footing. demand, supply, inventory, executives).

Is Inventory Waste or an Asset?

Supply Chain Shaman

We were discussing the results of the planning benchmarking work that we have just finished, and I was sharing some insights on inventory management when one of the panelists emphatically stated, “Inventory is a waste to manage. We feel so strongly about this that we do not have an inventory planning role.” His feeling was that inventory is an asset to manage. Inventory is both. Inventory management is a complex subject.

Changing the Production Performance Metric

Logility

Anyone who has worked with asset intensive process manufacturers knows how hard it is to change the thinking about machine capacity utilization. The world was capacity constrained and the focus was on making more stuff as efficiently as possible. The production efficiency is one of several measures across the supply chain including inventory and customer service and profitability. Now, they care about how much inventory they are holding.

Capacity Planning Software – Plan, Analyze and Prepare for capacity

ThroughPut

What is Capacity planning software? Capacity planning software is a programmable solution that helps manufacturing organizations understand the actual production capacity needed to address fluctuating demands for its products and services. With reference to capacity planning, design capacity is defined as the maximum amount of work that an organization is capable of completing in a given period. How much capacity buffer is needed for those?

Capacity Planning Software – Plan, Analyze and Prepare for capacity

ThroughPut

What is Capacity planning software? Capacity planning software is a programmable solution that helps manufacturing organizations understand the actual production capacity needed to address fluctuating demands for its products and services. With reference to capacity planning, design capacity is defined as the maximum amount of work that an organization is capable of completing in a given period. How much capacity buffer is needed for those?

Changing the Production Performance Metric

Logility

Anyone who has worked with asset intensive process manufacturers knows how hard it is to change the thinking about machine capacity utilization. The world was capacity constrained and the focus was on making more stuff as efficiently as possible. The production efficiency is one of several measures across the supply chain including inventory and customer service and profitability. Now, they care about how much inventory they are holding.

Elephant in the Room: Thoughts on Metrics That Matter in Semiconductor and Hard Disk Drives

Kinaxis

Supply Chain Insights recently published a Metrics That Matter report covering both the Semiconductor and Hard Disk Drive (HDD) industries. Semiconductor is poised to consolidate, which will have huge impact on the metrics. Understanding inventory planning will take on a new dynamic. On the downside, it appears that these industries are struggling with inventory issues. by CJ Wehlage.

Why Inventory Revaluation Is Your Next Important Task

Unleashed

All product-based businesses need to track the value of their inventory – and this goes double in a period of dramatic upheaval. The value of your inventory has likely changed thanks to the Covid-19 crisis, and you should consider revaluing it before you make any major business decisions. To help you understand the importance of tracking this metric we’ll illustrate several ways the value of your stock can change. What is inventory revaluation?

Three New Ways Retailers Can Improve Inventory Performance

ToolsGroup

By using data to stock items with higher forecasted demand, they can reallocate cash that would normally be tied up in poorly performing inventory, avoid margin erosion from markdowns and dead stock, and increase overall on-shelf availability metrics. Yet paradoxically retailers front-load inventory to the store, under the belief that goods must be on the shelf to sell. The challenge is that once it's forward-deployed, it's not always cost effective to re-position inventory.

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Using Analytics to Manage Inventory

Silvon Software

It’s true that inventory management is a challenge for both manufacturers and distributors. For example, excess inventory can cause a decrease in product turnover and a loss of profits, while stock-outs can cause backorders, unhappy customers and lost sales. Optimizing inventory can ensure that the right product is available in the right quantities, at the right time and the right locations, to meet supply and demand. Inventory Surplus.

4 inventory replenishment methods

6 River Systems

Maintaining proper inventory levels is critical if you want to keep your customer satisfaction rates high. The average American retailer has an inventory accuracy rate of 63%. Using the right inventory replenishment methods. These rules and processes are also used to determine how much stock to add to your inventory by reordering and how much back stock to move to your active inventory. Not every inventory replenishment method works for every business.

Why Inventory Revaluation Is Your Next Important Task

Unleashed

All product-based businesses need to track the value of their inventory – and this goes double in a period of dramatic upheaval. The value of your inventory has likely changed thanks to the Covid-19 crisis, and you should consider revaluing it before you make any major business decisions. To help you understand the importance of tracking this metric we’ll illustrate several ways the value of your stock can change. What is inventory revaluation?

Why Demand-Driven Manufacturing is Focused on Metrics for Action

synchrono

There are two subordinate measurements: Inventory and Operating Expense. These three measurements cover the gambit of what needs to be measured because they are directly related to customer orders, cash captured inside the organization, and the cash it takes to turn inventory into sales. Demand-driven managers know that having too many metrics leads to conflicting measurements. We call these Metrics for Action. Metrics for Action. Driving Continuous Improvement.

Wanted: Supply Chain Architects!

Supply Chain Shaman

I knew nothing about the world of logistics, inventory management and order optimization. From the research, we know that when organizations have source, make and deliver reporting to the same leader, that supply chain performance improves (intersection of operating margin and inventory turns). This analysis is ad-hoc is usually stimulated by the launch of a new product or a shift in capacity. In this evolution, cash, information, and inventory flows grow in importance.

Double Inventory Turnover In 9 months!

Supply Chain Game Changer

World Class Inventory Turnover Breakthrough Elements! “If we are truly a Supply Chain Services Company, then why is our Inventory Turnover only at 7?”, I had just joined the company and in studying their financial performance it stood out to me that if we were truly a Supply Chain Services company then having only 7 Inventory turns was extremely uninspiring. Could we double inventory turnover? Setting the Target to Double Inventory Turnover.

Warehouse Management Software – A Blueprint for Warehouse Excellence & Inventory Management

ThroughPut

A Warehouse Management Software (WMS) is one that helps plan, control, and manage the day-to-day manufacturing operations in a warehouse along with the guidance of inventory movement, optimizing order picking, and shipping of customer orders. The WMS guides the overall order and inventory replenishment on the factory floor. The Software is usually used alongside or integrated with a Transportation Management System or an Inventory Management System. Easy-to-follow metrics.

Warehouse Management Software – A Blueprint for Warehouse Excellence & Inventory Management

ThroughPut

A Warehouse Management Software (WMS) is one that helps plan, control, and manage the day-to-day manufacturing operations in a warehouse along with the guidance of inventory movement, optimizing order picking, and shipping of customer orders. The WMS guides the overall order and inventory replenishment on the factory floor. The Software is usually used alongside or integrated with a Transportation Management System or an Inventory Management System. Easy-to-follow metrics.

The Beginner's Guide to Inventory Control and Management

Supply Chain Opz

What is Inventory Control? Here we will try to answer most common questions about Inventory Control and also provide additional resources you can use. What is Inventory Control? Inventory Control can be defined as below: “Inventory control is the function responsible for all decisions about all goods and materials in an organization. Inventory control often starts with how to know the demand of particular product. What is Inventory Cost?

21 Vendor Metrics Your Supplier Scorecard Might be Missing

Supply Chain Cowboy

But is your scorecard missing key metrics? It includes a free Excel template that you can modify to match exactly what metrics you want to measure. While some of these metrics might not apply to your business model, there’s definitely a few to add if they measure something important to you and your customers. Of course, you’ll want to be courteous and professional with your feedback, but being open and honest with this metric can go a long way to solving problems between you.

Eliminating Your Excess Inventory

Loop Supply Systems

Eliminating Your Excess Inventory. Excess inventory is experienced by nearly every manufacturer – and it’s a big problem. Inventory is one of the 7 Lean Mudas (Japanese term for ‘waste’). COST OF EXCESS INVENTORY. According to Chris McLaughlin at LeanCor , a lean consulting company, Inventory Carrying Cost (ICC) is estimated to be an astonishing 18-25%. Now think about all of your inventory. THE INVENTORY QUALITY RATIO.

History Repeats Itself Without Supply Chain Leadership

Supply Chain Shaman

Tom, the colorful warehouse manager, constantly heckled Frank for the increasing inventory levels while Ed, the quiet material/logistics manager, constantly questioned if there was a better way. We had a choice to either install newer high-capacity machines for the Jell-O lines (CM Bartelts) running at over 1500 packages/minute or slower, more flexible equipment (IM Bartelts) at a rate of 650 pouches/minute. The second step is to align metrics to the strategy.

OverStocksis. A Dangerous Infectious Disease

The Supply Chainer Report

Manage Excess Inventory is the panacea for every Supply Chain professional. Acording to McKinsey Global Survey of challenges ahead for supply chain; Reducing Operating costs and Inventory levels , are the main goals for Supply Chain Top Management. Despite using leading-edge technology -the increasing number of complexities and the exponential growth of demand – makes Inventory control one of the top priorities for Drug’s manufacturers. What is Excess Inventory?

Double Inventory Turnover In 9 months!

Supply Chain Game Changer

Check out World Class Inventory Turnover Breakthrough Elements! “If we are truly a Supply Chain Services Company, then why is our Inventory Turnover only at 7?”, I had just joined the company and in studying their financial performance it stood out to me that if we were truly a Supply Chain Services company then having only 7 Inventory turns was extremely uninspiring. days of Inventory in the company. Excess and Obsolete (E&O) Inventory .

Is Your Company on top of its Inventory Planning Game?

Logistics Bureau

Good inventory management, like everything else, starts with good planning. But planning isn’t just the start; it’s the very foundation of effective inventory control. Inventory planning also happens to be an area that many companies fail to prioritise sufficiently. The Basics of Inventory Planning. These responsibilities extend across functions and when properly exercised, comprise supply, demand, distribution, production, purchasing and capacity planning.

4 Ways Big Data is Changing Inventory Management

EazyStock

In most enterprise scenarios, the volume of data is too big, moves too fast and exceeds processing capacity of existing applications. High data volumes present the biggest challenge to conventional IT structures since on-premise solutions typically do not have the capacity to manage large datasets. Big data exists in real-time and involves prompt access to data, alerts and inventory management and control metrics through cloud computing systems.

Renegade Riposte

Supply Chain Shaman

The more that I work on supply chain metrics, the more that I believe that both the SCOR model and the Gartner Hierarchy of Supply Chain Metrics (which I worked on for the period of 2006-2010) reward functional, not end-to-end supply chain behavior. I responded, by saying that I believe that the SCOR model and the Gartner Hierarchy of Metrics reward functional behavior and improve functional outcomes. What CEO does not like the concept of reducing inventory?

The Correlation Between Accurate Inventory Control and Sales Growth

Unleashed

Inventory control is much more than just having enough quantities of inventory stock on hand. Therefore, it makes sense that a direct relationship exists between inventory control and sales. Accurate inventory control helps a business to maintain the right amount of stock necessary to operate at optimum levels. Requiring the accurate management of a business’ raw material and other inventory purchases that will eventually be turned into goods for sale.

The Story Continues…. Let’s Don’t Sugar Coat the Real Issue

Supply Chain Shaman

port capacity and are critical for Asian trade. Today, this is not a valid assumption, and most manufacturers lack the inventory buffers for inconsistent flows. On March 16th-18th, I will be on a book tour in Europe discussing the concepts of Supply Chain Metrics That Matter. Uncategorized cargo global trade inventory ports supply chain visibility

‘Best in Class’ Supply chain from a Road warrior perspective – Part 3

Kinaxis

Which metrics are most important? Everyone would agree that the big buckets of metrics are Service, Revenue, Inventory (Cash), and Cost, which support your company’s strategic goals. In Part 1 , I wrote about company culture and making decision trade-offs using metrics, alignment of objectives, and the need to measure past, present and future performance. Why not let the order fulfillment representative understand how they may be affecting inventory?

The New Reality of Amazon FBA with Ephraim Ausch

The Logistics of Logistics

The sales increase pushed Amazon’s operational capacity and capability. The new performance metrics were a result of carriers arriving late and or missing appointments. There are four factors that affect a sellers IPI: Reducing excess inventory to increase profitability.

2020 Requires Big Wings and Feet

Supply Chain Shaman

Granular data by volume is a must to be able to manage replenishment, network design, and inventory targets. Companies that directly connect financial data to supply chain data without creating a feasible plan at an item/location level rate themselves significantly lower on S&OP effectiveness creating higher costs, levels of inventory and order short shipments. The organization, tightly capacity-constrained failed to forecast and build capacity ahead of market demand.

Is Your Supply Chain Ready for Social Media-Fueled Demand Volatility?

ToolsGroup

That means there are many companies out there struggling to make sense of constantly shifting demand data and to make smart inventory optimization decisions. There are all sorts of data to tap into, such as social sentiment, point-of-sale (POS), inventory, on-shelf availability and more.