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.

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.

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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.

Outsourcing Sourcing! 5 Lessons from Around the Globe!

Supply Chain Game Changer

Doing business with suppliers located overseas or in another country can be an overwhelming and daunting task even for expert Sourcing professionals. But beyond that he had no idea on where to start to source his product. Large companies can afford to have Strategic Sourcing Procurement staff around the world. There are a myriad of processes, controls, conditions and situations that need to be managed to ensure that your products are sourced consistent with your expectations.

Podcast: Rob O’Byrne on Digital Transformation, Sustainability, and Diversification in Sourcing

Requis

You see that as well in the actual distribution centre networks. Sourcing has probably been the biggest thing over the last decade or two, coupled with that reduction in local manufacturing of course. For others it means having really good visibility for outbound distribution.

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. In our recent analysis of supply chains that are “working well” , we find higher performance when companies have source, make and deliver reporting to the supply chain organization.

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

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. Much to my chagrin, when I entered into the world of supply chain, the processes of source, make and deliver were usually not designed. The focus is where are the right locations for factories and distribution centers?

Selling on Shopify for Beginners: Sourcing, Designing, and More

ShipBob

Source your products. Before you build an online store, you need to source your products. There are several avenues you can take to source products from working with local stores or suppliers to wholesale distributor options.

The Reorder Point Formula: Everything You Need to Know

Unleashed

A carefully calculated reorder point is therefore critical to good stock control, and keeps your key metrics looking healthy for your next inventory report. This creates one source of truth for data and enables effortless data analysis and collaboration. Source from local suppliers.

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. The year 2012 marked the 30th anniversary of the use of supply chain management as a cross-functional process for source, make and deliver in the commercial sector. I wanted to better understand which metrics truly mattered. The Metrics That Matter Are Different by Industry Sector.

Manufacturing Gains From Machine Learning

IQMS

Source: Smartening up with Artificial Intelligence (AI) – What’s in it for Germany and its Industrial Sector? (52 Source: Technology and Innovation for the Future of Production: Accelerating Value Creation (38 pp., Source: Digital Factories 2020: Shaping the future of manufacturing (48 pp., Source: Smartening up with Artificial Intelligence (AI) – What’s in it for Germany and its Industrial Sector? (52 Source: Leveraging AI for Industrial IoT (27 pp.,

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. Walmart has selected Nielsen for its source of POS data. SupplyPike has developed tools that utilize Walmart data to provide deep analyses into sales and forecast metrics.

Data 46

Made in “I Really Don’t Know”

Talking Logistics

As reported in USA Today : [In a sourcing practice nicknamed “China plus one”], big brands like Rip Curl send their specifications — what they want made and how much they’re willing to pay for it — to sourcing agents, who find factories that agree to fulfill them. no metrics, operate in functional silos). Therefore, the first step is to define those processes, along with who will execute and manage them and what the right metrics should be.

The Magic Bullet for Real-Time Supply Chain Collaboration? Cloud Visibility.

synchrono

Modern Demand-Driven Manufacturers are leveraging real-time Cloud-based visualization and collaboration systems to view data from multiple, disparate sources while keeping the data in its original, host environment. There is no limit to the data sources that can be connected or how the data can be sliced and diced and made visual to accommodate the different layers and levels of the manufacturing enterprise.

KPI 69

Gartner’s 2018 Top 25 Supply Chains List! Is it Still Relevant?

Supply Chain Game Changer

Source: Gartner. Gartner Survey Metric Notes: 1. Source: Gartner (May 2018). SCM #SupplyChain #Logistics #Distribution #Technology #Leadership #Procurement #Purchasing #Freight. Supply Chain Management Distribution Freight Leadership Logistics Procurement Purchasing SCM supplychain TechnologySubscribe Here! Email Address. Check out 5 Trends in the Gartner Hype Cycle for Emerging Technologies. Gartner recently announced their 2018 Top 25 Supply Chains List.

Supply Chain Manager – A “Green” Superhero

Logility

For example: Optimizing a distribution network not only reduces logistics costs but, in most cases, reduces carbon emissions through fewer transportation miles and/or less inventory holding costs. Source: Nielsen Product Insider, 10/20/2018.

Food Waste and World Hunger – The Food Supply Chain is Broken! (Videos)

Supply Chain Game Changer

Video Source: [link]. Consumers are the biggest source of food waste in developed countries as they discard at least 20-30% of what they purchase. Table Source: [link]. If all the world’s food were evenly distributed, there would be enough for everyone to get 2,700 calories per day – which is more than the minimum 2,100 requirement for proper health. ” Source: [link]. Check out ReFed’s Roadmap to Reduce Food Waste: Video Source: [link].

Food 63

Best Practice: Creating a Governance Mechanism for Analytical Learning in Organizations

NC State SCRC

Because of the long lead-times associated with the manufacturing infrastructure required to source and produce semiconductors, the Director’s Council espouses a long-term vision and tactical planning scenario. This is broken down into more minute analyses of what could happen with a smaller range of capital, and what could be delivered with different product health indicators including yield or other operational metrics.

Quick Start Guide to Using Machine Learning for Demand Planning

ToolsGroup

Without baseline metrics on what you want to improve on and why, how can you be confident your strategy is working? And because machine learning systems get smarter over time, having a consistent method of measurement is even more important to ensure you can accurately track how outcomes and ROI are improving against established metrics. Data Variety The more different types of data sources you factor in (e.g.

Achieving Healthcare Transformation, Powered by Supply Chain

ivalua

Shift towards self-contracting and self-distribution: With health systems gaining significant scale and wanting more control over their supply chain, this shift is accelerating. Quite often there can be a general lack of spend and vendor management and strategic sourcing activities. BSW built up a leading supply chain function and established a self-distribution model, all of which helped to improve overall margins. Establish a more advanced self-distribution model.

Carter’s: A Story of Supply Chain Leadership

Supply Chain Shaman

To satisfy demand, Carter’s operates out of five domestic and international distribution centers handling approximately 31,000 items at a location (SKUs). The company leverages globally sourcing strategies to buy products at a lower cost and then deploys some unique process logic to drive mass customization for retailers. Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. (As

The Sensing + Intelligent + Social Supply Chain: Why do you need it?

Kinaxis

The reality is, there’s never going to be one perfect answer that doesn’t involve some level of tradeoff across conflicting metrics and objectives. But the reality is that today’s distributed supply chains have large portions of the network that are external to the organization. The result is a need for integration between modules, but also between companies with their own ERP systems and data sources.

Walmart Sales Analytics – Inside the Insights

SupplyPike

Therefore, each retailer tends to use similar sales metrics with a few exceptions. Those new to retail metrics may not know what critical sales or metrics are or why they are so critical for Walmart sales analytics. These metrics represent the sum of dollars sold at the register and the sum of units sold at the register, respectively. Necessarily, these metrics inform every part of Walmart sales analytics- from the simple to the advanced.

Supply chain inventory optimization – Beyond the analytics

Kinaxis

by Alexa Cheater From designing, sourcing and manufacturing, to distribution and consumption, your supply chain is at the heart of your customer satisfaction levels. You’ll need to overcome distributed data and inventory, navigate a complex network of locations and bills of materials (BOMs), and manage the configuration of thousands of parts. The amount of stock the retailer needs is a function of the service it receives from the distribution center.

Advanced Analytics Are Everywhere!

Logility

Today it seems like you can buy just about any type of device that supports analytics including; Toothbrushes that analyzes your brushing habits and alerts you to ways to maximize brushing through your smart phone; Wristwatches that tracks your every motion and provides performance metrics to help you meet your health and fitness goals; Refrigerators that monitor product usage and recommend when to buy milk or suggests new products based on actual consumption data; and.

Top 10 Supply Chain Innovations of 2018

Material Handling and Logistics

Thanks to omni-channel distribution, 3-D printing, self-service logistics and other avenues of disintermediation, traditional supply chain roles are rapidly being transformed into all-new opportunities. Source ID. Source ID. Source ID. The retail giant plans to take out 50 million metric tons (MMT) by 2030, which is equivalent to the emissions associated with the average annual electricity consumption of 40 million Chinese households. Source ID.

Getting that “Swing” in Supply Chain Management

Talking Logistics

What you find instead are functional groups — such as Manufacturing, Distribution, Sales and Marketing, and Procurement — operating in silos, like a boat full of rowers each doing their own thing. How do you successfully align goals, metrics, and resources across functional groups? Which metrics are the right ones? Rather than selecting a plethora of meaningless metrics, it is always better to focus on a critical few, and select them wisely.

Advanced Analytics Are Everywhere!

Logility

Today it seems like you can buy just about any type of device that supports analytics including: Toothbrushes that analyzes your brushing habits and alerts you to ways to maximize brushing through your smart phone; Wristwatches that tracks your every motion and provides performance metrics to help you meet your health and fitness goals; Refrigerators that monitor product usage and recommend when to buy milk or suggests new products based on actual consumption data; and.

How to Sustain a Lean Culture in Manufacturing & Supply Chain

Cerasis

These metrics would, of course, be aligned and are updated every hour. The metrics are also manual as automatic metric systems cannot retrieve the information at an hourly frequency as these metrics are process inputs and not outputs. Next, you would have management supporting this effort during their daily Gemba walk, reviewing these hourly metrics. Specific metrics: process metrics and outcome metrics.

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Renegade Riposte

Supply Chain Shaman

After, I explained this, I granted Peter permission for the council to use the Index (the use of the Supply Chain Insights content follows the principles of open source), I then said to Peter, “I am glad that you called. 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.

10 Ways Effective Transportation Management Drives Competitive Advantage

Cerasis

Attempting to "normalize” flow through a distribution center or inbound to manufacturing is a critical aspect to controlling overall logistics and transportation costs. Additionally, some level of predictability helps in the carrier sourcing aspect of the business too. Creating an Effective Transportation Management Program Run by Metrics. Speaking of metrics.Utilizing the right metrics to monitor the health of your transportation footprint and network are critical.

Forecast Accuracy at the SKU Level is Achievable

Logility

Over my 25+ year supply chain career I have worked for several distribution-intensive companies and every single one of them had a focus on improving forecast accuracy. Accurate forecasts help minimize inventory, maximize production efficiency, streamline purchasing, optimize distribution, maximize customer service, ensure confidence in company financial projections.

Off to another exciting year of student-industry engagement at NC State on cutting-edge supply chain projects

NC State SCRC

Duke Energy Sourcing Automation through AI: Sourcing Optimization through technology and artificial intelligence are becoming more readily available within the Supply Chain industry. This team will work to identify specific opportunities within the sourcing process at Duke Energy to advance sourcing strategies through AI technology and reduce low value sourcing efforts. MUFG Union Bank Strategic Performance Metrics.