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? Data Distribution Logistics Supply Chain distribution center metric

My Take: Metrics that Matter

Supply Chain Shaman

While Joe is trying to balance the feedback from Filipe and Frank, he is often asked to change his metric targets by his CFO named Lou. After two years of research, I think that we throw the supply chain out of balance and limit its potential through the use of traditional and functional metrics. It is for this reason, that I believe that the traditional SCOR Model metrics are problematic. Achieving Balance in Metrics. Last week, I held my new book in my hand.

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Walmart OTIF Metrics

SupplyPike

We’ve discussed the basics of OTIF and the fundamentals of OTIF before, but we thought we’d drill down deeper into the individual metrics. First, we’ll start by reviewing the basic goals of OTIF, and then we’ll dive into each metric and the compliance issues of each metric. We are only covering Supplier Accountability OTIF metrics. In-Full metrics measure the number of cases ordered against the number of cases delivered.

Driving Supply Chain Analytics User Adoption with Cross-Departmental Metrics

Logility

The obvious danger of this is that business rules and data governance often don’t exist from department to department or user to user, leaving an overall picture into the health of the business that is foggy because KPIs and metrics do not correlate across the organization. Executives look at high-level company metrics, while other departments such as Finance, Sales, and Operations work at a more analytical level.

3 Core Metrics & 10 Soft Metrics for Measuring Supply Chain Performance

Cerasis

3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. 10 Soft Metric Considerations in Measuring Supply Chain Performance. Customer Service Levels : When it comes to how a shipper defines the value of a logistics provider or 3PL to the bottom line, there are often several Key Performance Indicators (KPIs) and Logistics Metrics taken into consideration.

Supply Chain Metrics - Gaining Visibility in a Data-rich World

Logility

The second part of Drucker’s quote, “if you can't measure it, you can't improve it,” really brings home the importance of having the right set of metrics. In the field of supply chain management, we have created an abundance of metrics and key performance indicators (KPIs). For the past 30 years I have been involved with multiple efforts to build a set of supply chain metrics and have learned a few things along the way.

How Slotting Optimization Technology Fosters Strategic Improvement for Distribution Centers

Cerasis

Today, warehouse managers face an endless battle with a growing number of products and limited storage capacity, and among distribution center managers, the challenge of warehouse slotting is even more difficult. So, distribution center managers who leverage strategic slotting optimization technology could cut picking costs by up to 50 percent. The revenue of a given distribution center is directly related to its carrying costs. Distribution Supply Chain Technology

Metrics that Matter: Customer Service

QAD

Inventory accuracy and minimizing stockouts are very important to customer satisfaction, but a few other metrics also impact the ability to meet customer expectations. To calculate, add the cost of order entry and maintenance, approvals, EDI, installation and installation planning (if applicable), fulfillment, distribution, invoicing, collection and related accounting costs and divide by the total number of orders. Choosing Metrics.

Metrics and Issues to Consider in SQM (Supplier Quality Management) By 5 Big Industries

Cerasis

In the first post our long tme guest blogger, Chuck Intrieri of The Lean Supply Chai n, gave us 5 core metrics to evaluate supplier performance using supplier quality management and a 4 step process to execute. In today’s post, Chuck will take it a step further and break down metrics and issues to look out for by 5 main industries: Pharmaceuticals. Review of SQM Metrics and Issues Across 5 Core Industries. #1: Trend Metrics Collected per Site.

What Warehouse Management Technology Is Necessary to Create a Best-in-Class Distribution Center?

Cerasis

New warehouse management technology, like analytics, machine-to-machine learning, and automated systems, pushes the limits of standard operations to create best-in-class distribution centers. The days of using a small, standalone warehouse management system (WMS) are ending, and distribution centers must turn to newer, more advanced warehouse management technology to meet rising demand for an omnichannel world. Distribution Technology Warehouse

Efficiency vs. Productivity: Metrics that Matter…Until They Don’t

synchrono

When we look at the organizations of today, words like efficiency and productivity get thrown around with little understanding of what is required to improve one of these measurements (metrics). Let’s discuss why an efficiency metric is usually not the right metric and what a Lean manufacturing expert does when measuring true value in the supply chain. This “lost opportunity metric” is now something that Lean manufacturing experts try to keep at the top of the list.

Top 5 Metrics & Benchmarks To Measure In Pickup & Delivery Logistics

Abivin

Managing your business operations would be challenging without proper metrics and data analytics. Below are 5 significant metrics in Pickup & Delivery Logistics that any company can use to measure their performance in meeting initial goals. Perfect Shipment Measurement This metric can also be called Perfect Order Measurement. For retail vendors, this metric is particularly crucial, since they may have to pay a penalty for orders that show up late.

Supplier Quality Management: What it is, 5 Key Metrics to Know & a 4 Step Supplier Evaluation Process

Cerasis

The next posts in the series will break down metrics and issues to consider in SQM by industry and conclude with a case study on the application of SQM. 5 Key Metrics to Use for Scoring Supplier Quality Management (From LNS Research ). The definition of this metric is similar to the way it sounds. Quality affects many different parts of the business, so it is critical to establish a comprehensive metric that provides visibility into the most important areas of operations.

Supply Chain News onThe Top Distribution Center Metrics for 2016

Supply Chain Digest

Karl Manrodt and Company Identify the Top Dozen Once Again, and Surprisingly, Primary Strategies Do Nott Much Impact Metrics or Performance

Top 5 Metrics & Benchmarks To Measure In Pickup & Delivery Logistics

Abivin

Managing your business operations would be challenging without proper metrics and data analytics. Below are 5 significant metrics in Pickup & Delivery Logistics that any company can use to measure their performance in meeting initial goals. Perfect Shipment Measurement This metric can also be called Perfect Order Measurement. For retail vendors, this metric is particularly crucial, since they may have to pay a penalty for orders that show up late.

Which Metrics Matter? Interview with Philippe Lambotte

Supply Chain Shaman

My journey to understand supply chain Metrics That Matter started three years ago. We are currently mapping the progress of all public manufacturing, distribution and retail companies on three factors: Strength: Year-over-year improvement on operating margin and inventory turns for the past six years. Balance: The ability to balance a portfolio of metrics to maximize market capitalization and free cash flow. How do you balance metrics ? .

Vendor-managed inventory and distribution planning in the food and beverage industry – here’s something to chew on

Kinaxis

A demanding distribution network comprised of producers, distributors and retailers. The customer shares data such as point of sale (POS) data, customer forecasts, current inventory levels, and inventory target levels, which will be used to develop an appropriate distribution plan by the vendor. Through this arrangement, Walmart would tell P&G how much stock was moving out the distribution centers to its stores; P&G would identify how much to replenish and when.

Supply Chain News on the Top Distribution Center Metrics for 2015

Supply Chain Digest

Primary Strategies Do not Much Impact Metrics or PerformanceKarl Manrodt and Company Identify the Top Dozen Once Again.

What to Look for in a Food Distribution Warehouse Provider

Kanban Logistics

Makers of all types of products turn to third-party logistics (3PL) providers to optimize warehousing and distribution operations in order to meet modern supply chain demands. In this article, we’ll examine the many things you’ll need to look for in a food distribution warehouse provider to not only optimize your operations – but do so safely as well. 10 questions to ask prospective food distribution warehouse providers. Additional food distribution warehouse considerations.

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Safety Stock Calculation For Your Wholesale & Distribution Business

EMERGE App

When you’re running a busy wholesale and distribution business, you face the risk of stockouts every day. However, like any inventory management metric, you need to see the safety stock formula in the context of your business and seasonal sales. So use your common sense when dealing with inventory metrics. Keeping safety stock should be an integral part of running your wholesale and distribution business. Introduction.

Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. Reward teams for cross-functional metrics. We like the metrics of growth, on-time and in-full orders, operating margin, inventory turns, and Return on Invested Capital (ROIC).

Measuring Up?

Supply Chain Shaman

The supply chain is a complex system with finite, and non-linear relationships between supply chain metrics that drive balance sheet results. We find that companies can improve one, but not two of the metrics. Teams struggle to drive improvement in both metrics at the same time. We term these the Supply Chain Metrics That Matter because they have a higher correlation to market capitalization.). C2C is a compound metric of receivables plus inventory minus payables.

The Right Data and Metrics are Vital for FMCG Route to Market Success

Enchange Supply Chain Consultancy

For example, we must be able to measure our own sales performance, our brand/SKU distribution, our new product introductions, our volume, our revenue, our share, our displays, our in-store facings, our pricing and promotion performance, etc. 20 Steps to RtM Excellence RtM Strategy Ross Marie RTM Retail ERP Promotions Information RTM Assessment Tool Distribution Sales Traditional Trade FMCG Route to Market ERP/SAP SKU

Understanding Supply Chain Management

SupplyPike

Also, as offshoring makes modern supply chains more complicated, multi-channel distribution and global marketplace emphasize on the importance of SCM. Five Key Metrics for Monitoring the Impact of Panic Buying on your Supply Chain. Supply Plan: The Supply Plan metric provides Walmart’s best guess on how many units it expects to order from a supplier. Our Retail Intelligence software allows you to view all sorts of metrics in easy to understand charts, maps, and numbers.

SCM 48

Provoking the Industry to Move Past Incrementalism

Supply Chain Shaman

However, most of the data is not a normal distribution. An orbit chart is a plotting of data at the intersection of two metrics. In this case, the metrics are operating margin and inventory turns. market-driven value chains metrics that matter New technologies apparel chemical digital transformation incrementality JDA Oracle SAP transformationDefinitions: Provocateur.

Wanted: Supply Chain Architects!

Supply Chain Shaman

So when the warehouse team threatened to unionize, I transferred into a distribution, warehouse environment. I helped to implement early versions of Distribution Requirements Planning (DRP). (I I ran distribution centers for the next fifteen years. The focus is where are the right locations for factories and distribution centers? The focus is to rationalize the flows from the distribution center to the customer.

Public Markets Reward Supply Chain Alignment

Supply Chain Shaman

The relationship between corporate financial performance and supply chain metrics was complex; and in my first attempts, I was unable to derive a correlation. As I wrote about this concept, and worked with Abby Mayer ( @indexgirl ) to write the Supply Chain Metrics that Matter series of reports, I discovered more on the depth of the complexity. I wanted to better understand which metrics truly mattered. The Metrics That Matter Are Different by Industry Sector.

Writing: Working on My Book

Supply Chain Shaman

Interview for Metrics That Matter. My kitchen table is piled high with interviews for the upcoming book, Metrics That Matter. I recently interviewed him for my upcoming book, Metrics that Matter, that publishes in August 2014. Which metrics do you think matter to supply chain excellence? In my experience this has been a powerful metric to generate profound change. I have come across customer service metrics and fulfillment metrics that overstate performance.

Fast Fashion—Mastering Affordable Distribution in a Flash

FLEXE

This article breaks down the main characteristics of a fast fashion supply chain and then walks you through a handful of ideas for mastering fast fashion distribution affordably. It spends another week getting through a regional DC network, put away, and only then is ready for picking and distribution to retail stores. To accomplish this, it requires distribution centers to be close to retail stores. ” Mastering Fast, Affordable Distribution.

Fast Fashion—Mastering Affordable Distribution in a Flash

FLEXE

This article breaks down the main characteristics of a fast fashion supply chain and then walks you through a handful of ideas for mastering fast fashion distribution affordably. It spends another week getting through a regional DC network, put away, and only then is ready for picking and distribution to retail stores. To accomplish this, it requires distribution centers to be close to retail stores. ” Mastering Fast, Affordable Distribution.

Replenishment 201: Monitoring Store-Level Inventory

SupplyPike

Instocks are an incredibly important metric to keep track of as well. There are three instock metrics to keep in mind: Current Instock Percent: measurement of valid stores that have at least one unit on hand Current Replenishable Instock Percent: measurement of daily forecasted demand against current on hand store inventory. These metrics will help you examine your instocks on a corporate level. Learn: How a product is determined to be replenishable. How to measure instocks.

Manufacturing Gains From Machine Learning

IQMS

AI and machine learning constraint-based algorithms and modeling are making it possible scale inventory optimization across all distribution locations, taking into account external, independent variables that affect demand and time-to-customer delivery performance. OEE is a pervasively used metric in manufacturing as it combines availability, performance, and quality, defining production effectiveness.

Syndicated Data for CPGs

SupplyPike

Data syndication drives the automated process of communicating merchandise-related data to channels of sales and distribution. Category Consistency: Application of OVT does away with almost 20% discrepancy between a category advisor’s custom hierarchy metrics and Walmart’s parameters of performance. SupplyPike has developed tools that utilize Walmart data to provide deep analyses into sales and forecast metrics.

Data 46

Why Large Companies Increasingly Opt for 4PL Services

Logistics Bureau

By contrast, the third-party logistics model is where a manufacturer retains oversight of its supply chain but outsources such processes as warehousing, shipping, packing, and distribution to a 3PL provider. Distribution to Woolworths supermarkets and beyond.

Novo Nordisk: A Story of a Supply Chain Leader

Supply Chain Shaman

For some countries, due to very long processing time in customs and handling, 1/5 of the shelf life is gone before the final delivery to local distribution center. Local resources, in the countries of final distribution, manage demand and inventory planning. We also strive for aligned and optimized distribution network structure in our sales regions. Supply chain excellence Supply Chain Talent Supply Chains to Admire cold chain healthcare Metrics That Matter Novo Nordisk