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. What Distribution Center Metrics Need Tracking?

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. Unreimbursed Freight. Improving forecast accuracy can help improve DIFOT without increasing inventory.

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. Inventory is both.

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

Cerasis

When you choose a company to transport your freight or to supply you with the materials you need to manufacture a product, you are putting your hard work and reputation in their hands. 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 ).

Optimize Your Freight Spend Without Negotiation

Talking Logistics

Companies across all industries are dealing with rising transportation costs and a key question many CEOs, CFOs, and supply chain executives are asking is, “What can we do to better manage and control our freight spend in today’s market?” Rising Freight Spend . With the rapid rise in omnichannel shopping and the need to fulfill those orders quickly, retailers must balance inventory positioning, the labor cost to fulfill the orders, and transportation costs.

Excess Inventory? No Problem. You Have Trailers In the Yard.­­

Talking Logistics

With the national warehouse vacancy rate hovering at record lows and warehouses bloated with inventory pulled in from China during 2018 to get ahead of impending tariffs, companies can combine flexible storage options with advanced technology to create an end-to-end supply chain solution that works. But even as developers have flooded the market with new inventory, some retailers are still having trouble finding adequate, flexible space. The post Excess Inventory?

Guest Post: Ignoring this Performance Metric is Risky

TMC

A major freight company employs a team of meteorologists that works closely with its flight dispatchers and contingency coordinators, for example. Companies can then prioritize their mitigation efforts based on parameters such as value-at-risk, customer importance, and field inventory.

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

Kinaxis

What is vendor-managed inventory? VMI is the process whereby a supplier or vendor manages and replenishes inventory at a customer’s location at the levels required by the customer. The benefits of the vendor-managed inventory process include: Enhanced visibility for vendor.

Supply Chain Scope: New Study Shows Rise in US Inventories; California Estimated to Improve Freight Efficiency by 25% in 2030

Arkieva

A new study by the SupplyChainDigest analyzing the main components of working capital: Days Sales Outstanding (DSO), Days Inventory Outstanding (DIO), and Days Payables Outstanding (DPO) revealed an uptick in DIO. Targets for 2030 Include: Improve freight system efficiency 25 percent by 2030.

Wanted: Supply Chain Architects!

Supply Chain Shaman

I knew nothing about the world of logistics, inventory management and order optimization. This work is typically periodic to accompany a freight bid or an end-to-end project. Companies need multi-tier Available to Promise (ATP) and real-time inventory management.

23 Reasons the Ideal TMS is best for LTL Freight Shipping

Cerasis

The ideal TMS can maximize the efficiency of a warehouse and directly affect inventory management. As a result, the amount of inventory can be managed to reflect the consumer demand. Freight Consolidation. Sometimes, the lines between FT and LTL are blurred, especially when all LTL shipments are compiled into FT via freight consolidation. Mobile Access to KPIs and Metrics.

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.

Managing a Third Party Logistics Partnership

The Logistics of Logistics

When you have chosen a 3PL partner, insure that you have an effective Service Level Agreement (SLA) with accompanying Key Performance Indicators (KPIs) to manage the Service Level of the 3PL. This SLA/KPI has to be negotiated and agreed upon by you and your 3PL partner.This negotiation time can take three (3) to Six (6) months. If you do not want to start at the 3PL as a contact customer with a SLA/KPIs, you can ship your goods and become a public account.

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. How do you define the metrics that matter?

Logistics Key Process Indicators (KPIs)

The Logistics of Logistics

If you move freight for a living, you know the importance of logistics key process indicators (KPIs). A KPI is an indicator (a metric) that you have chosen, and agreed with your partners and or customers, that will determine whether you are meeting your critical success factors. Key Process Indicators vs. Metrics. I sometimes use the terms KPI and metrics interchangeably, but they are not the same. Only the most important metrics can grow up to become KPIs.

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An Inventory Audit Guide for Wholesalers and Distributors

EMERGE App

However, we shall soon see why an inventory audit is critical for businesses dealing with physical stock. You shouldn’t confuse an inventory audit with two popular means of tallying your stock: physical stock takes and cycle counting. What is an Inventory Audit.

Service Level Agreement Defined

The Logistics of Logistics

Inventory Record Accuracy via Cycle Counting and Root Cause analysis. Each KPI has a specific measure or percentage to be reviewed based on your needs, examples : Inventory Records Accuracy: 98-100%, IT implementations: a specific timeline, Cost Reduction: 5% per quarter based on the Logistics provider’s expertise, Continuous Improvement initiatives: Going beyond the customer’s expectation: 5% improvements each quarter, etc.

KPI 100

LTL Carrier Scorecard with Key Process Indicators (KPIs)

The Logistics of Logistics

Key Process Indicators vs. Metrics. A metric is any standard of measurement (number of carriers, inventory turns, average shipment weight, etc.). A key process indicator (KPI) is a metric that you have chosen that will give an indication of your performance and can be used as a driver for improvement. This means that while all KPIs are metrics, not all metrics are KPIs. Only the most important metrics can grow up to become KPIs.

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4 Long Term Ways to Save with Less Than Truckload Freight Shipping

Cerasis

So, your organization has decided to explore the benefits and perks of less than truckload freight shipping. The dedicated TMS can further eliminate the frustrations that occur with typical full-truckload (FT) shipments and small package freight by combining all KPIs and available options into a single, comprehensive tool. Overall Costs of Less Than Truckload Freight Shipping. Few shipping processes can be more complicated than managing Less than truckload freight shipping.

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

Supply Chain Shaman

The people on the ground–my contacts in the 3PL, freight forwarding and transportation industry–know that the labor strife is only a part of the larger story. Today, this is not a valid assumption, and most manufacturers lack the inventory buffers for inconsistent flows.

Is Your Supply Chain A Cost Centre or a Value Creator?

Supply Chain Game Changer

From planning to negotiating to buying, from moving goods to processing goods, and from managing data to managing inventory. Whatever your Industry you should be able to make comparisons to competitors, do benchmarking, and even compare yourself on key metrics across industries.

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

Supply Chain Game Changer

Inventory Turns 3. (10%). Return on Assets (ROA) and Inventory turns are also a part of the scoring process. There is no question that the Supply Chain of any business usually has a significant impact on ROA and certainly on Inventory turns. Further an Inventory turn of 1.0

‘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. Why not let the order fulfillment representative understand how they may be affecting inventory?

Managing E-Commerce Fulfillment Spikes With Data Analysis

Cerasis

Lackluster insight into freight spend and poor freight management controls. Fortunately, data analysis allows Warehouse Managers to gain the insights necessary to create metrics to track performance, which are also known as key performance indicators (KPIs).

3PL Fulfillment Prices! (Infographic)

Supply Chain Game Changer

Third, 3PL fulfillment companies are also giving away less of their negotiated small parcel freight discounts. Inventory shrinkage decreased from the previous year to an average of 1.26%. Subscribe Here! Email Address. Subscribe to Supply Chain Game Changer.

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This Week in Logistics News (July 15-19, 2013)

Talking Logistics

Con-way Freight Raises the Bar on Mexico Service, Adds Door-to-Door Tracking, 24-Hour Customer Resource Center, Enhanced Web Tools. Overcapacity in the global air freight market, increasing customer preference for lower-yielding shipping solutions, and a slowing U.S.

7 Pitfalls of Amazon FBA (Fulfillment By Amazon)!

Supply Chain Game Changer

While FBA sellers weren’t held directly liable for this failure, thousands of FBA sellers were severely impacted when Amazon enforced last minute changes to their inventory storage policy just before the holidays. Amazon FBA Inventory Woes. Amazon FBA Inventory Swap.

Tips for Maximizing Warehouse Space

Cerasis

Using New Technology for Maximizing Warehouse Space Is the Solution New technologies and warehouse automation are poised to enable warehouse managers to increase inventory without necessarily increasing space. Put brick-and-mortar storage space to use for extra inventory.

Top 5 Roadblocks to Effective Inbound Logistics Management

Cerasis

If your vendors do not understand your organization’s policies and procedures regarding inbound freight , how can they adhere to your needs? This means that a near-majority of companies are faced with the pitfalls of internal, low-guidance systems for managing both inbound and outbound freight. Approximately 54 percent of companies actively run metrics on inbound freight, but these metrics may be lacking. In other words, the term, “metrics,” can be deceiving.

Supply Chain Personified! The Link Between Your Company Silos!

Supply Chain Game Changer

The responsibilities, metrics, skills, strategies and mandates for each function can cause people to put their functional focus ahead of the greater company objectives. Freight and Logistics Human Resources Procurement Supply Chain Management Business HumanResources Leadership SCM supplychai

9 Steps to Establish the Lean Supply Chain: A System of Interconnected & Interdependent Partners

Cerasis

There should be metrics involved to monitor these objectives to ensure success across the supply chain. These metrics should be reviewed frequently to ensure supply chain success. o Space—holding places for unnecessary inventory. Inventory velocity and inventory reduction.

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The Supply Chain Detective™! In Search of Broken Supply Chain Clues!

Supply Chain Game Changer

You know the people, the processes and the metrics. Most companies have a Procurement function, Distribution, Logistics, Planning, Inventory Management, Product Data Management, and Operations. Cash constraints, and borrowing money to fund operations and finance inventory.

Guest Blog Part 2: Start Your eKanban Implementation with Value-stream Mapping and Engaging Your Suppliers

synchrono

With eKanban implementations, this can be any number of problems including excess materials on hand, slow inventory turns, too much scrap and more. If you’re not using a manual Kanban system, map the current inventory replenishment process.) Freight costs. Monitor your metrics.

The Top 10 Supply Chain Blog Posts from 2017

Cerasis

Today, is day two of our annual year-end series highlighting the top blog posts in each of our 5 main categories: Manufacturing , Supply Chain , Logistics , Transportation Management , Freight. Omnichannel Supply Chain Metrics: What Should Supply Chain Leaders Measure?

9 Key Considerations in an Effective Last Mile Delivery Strategy

Supply Chain Game Changer

Obviously, shippers cannot track what consumers use their personal devices for all the time, but they can use metrics and Big Data to track what consumers are doing on their respective e-commerce sites. As a result, shippers should consider the form, function and placement of inventory, including inventory coming in from reverse logistics channels, in their entire warehousing and distribution network. Subscribe Here! Email Address.

Reducing Costs in Shipping with a Focus on Inbound Logistics Strategy

Cerasis

Metrics and Auditing Prevent Overbilling and Overpayment to Vendors for Shipping Costs. Through modern technology, the inbound logistics strategy can be executed easier than believed, and real-time order tracking and metrics prevent overbilling and overpayment. Metrics can also go further than auditing by giving your company a means to measure the performance of your vendors, boosting compliance with the rules and stipulations within your inbound logistics guide.

The Supply Chain Carbon Footprint Reduction Strategy

Supply Chain Game Changer

The links between these nodes are the freight, transportation and logistics players who move the goods throughout the Supply Chain. The processes, and the decisions that are made in managing those activities include Component selection, Supplier selection, Network creation, Node location planning, delivery requirements, and inventory levels amongst many other elements. Additionally there should be aggressive management of freight modes. Subscribe Here! Email Address.