KPI Key Performance Indicators in Supply Chain & Logistics

Logistics Bureau

I’ve literally seen KPI “packs” the size of phone books, and even KPI sets circulated as a monthly magazine… that no one reads. Supply Chain KPI Tips. Supply Chain KPI. Inventory stock turns in Days. What’s a KPI, Anyway? Inventory management.

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9 Key Topics to Understand to Frame A Shipper’s Mind for Effective KPI Management with a 3PL

Cerasis

This is the first post in an ongoing series on effective KPI management from third party logistics consultant, Chuck Intrieri, of The Lean Supply Chain. . It can take months to negotiate a complex SLA/KPI document, as you go back and forth with your logistics provider so the document becomes a “win-win” for both parties. 9 Key Topics to Understand to Frame A Shipper's Mind for Effective KPI Management. For example: Inventory Record Accuracy has to be 98-100% accurate daily.

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Quantum Inventory Theory?

The Smart Software

The post Quantum Inventory Theory? Physics at the quantum level is quite weird – not at all like what we experience in our usual macroscopic life. Among the oddities are “superposition”, “entanglement”, and “quantum foam.”

Logistics KPIs Case Study: Whirlpool’s Supply Chain and Logistics Success Driven by Effective KPI Implementation

Cerasis

We conclude our ongoing series in talking about effective KPI management by giving you a real live Logistics KPIs management case study from Whirlpool's engagement with a logistics service level provider. Also monitored were Whirlpool supplier SLA/KPI agreements.

7 Strategic Performance Business Practices with 3PL KPIs and 4 KPI Problems to Solve

Cerasis

We began our series first writing about the 9 key broad and somewhat soft topics to understand in effective KPI Management. Sales, Inventory, and Production Planning (SIOP) should be used for business planning and strategy in the shipper, 3PL relationship. Frequent 3PL KPIs reviews will detail performance appraisal of each KPI set by the 3PL and shipper/customer. Scorecard analysis, % to all goals, and critical path: “What KPI is holding us back from overall success?

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Stop Leaking Money with Manual Inventory Controls

The Smart Software

An inventory professional who is responsible for 10,000 items has 10,000 things to stress over every day. The post Stop Leaking Money with Manual Inventory Controls appeared first on Smart Software.

An Introduction to Some Supply Chain KPI Fundamentals

Logistics Bureau

What is a KPI? What is a KPI? Can you explain what a KPI is? Take the notion of a KPI or key performance indicator, for example. Some KPI Examples. DIFOT (delivery in full and on time) is a typical example of a supply chain customer service KPI.

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Managing a Third Party Logistics Partnership

The Logistics of Logistics

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. You should also have a Modification Clause wherein you can modify the SLA/KPI/ Contract and Prices in 30-60-90 days. 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.

Riding the Tradeoff Curve

The Smart Software

At one extreme, you can grossly overstock and never run out until you go broke and have to close up shop from sinking all your cash into inventory that doesn’t sell.

Ten Tips that Avoid Data Problems in Software Implementation

The Smart Software

Once a customer is ready to implement software for demand planning and/or inventory optimization, they need to connect the analytics software to their corporate data stream.This provides information on item demand and supplier lead times, among other things.

Global FMCG Supply Chain Transformed by Analytics

Enchange Supply Chain Consultancy

Customer service FMCG KPI Supply Chain Inventory Management & Stock Control Supply Chain AnalyticsThe Challenge A leading global FMCG company undertook an aggressive supply chain improvement programme across 150 markets.

FMCG Turn-around Intensive Care Recovery KPIs

Enchange Supply Chain Consultancy

FMCG KPI Supply Chain Cost Reduction Inventory Management & Stock Control balanced scorecard RecoveryOn a daily basis the amount of care we give to the human body is remarkably little.

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5 Considerations When Evaluating your ERP system’s Forecasting Capabilities

The Smart Software

Blog Business Policy Demand Planning Excellence in Forecasting Inventory Optimization Operational Analytics demand planning implementations ERP inventory modeling inventory optimization kpi metrics order management probabilistic modeling statistical forecasting supply chain analyticsConsider what is meant by “demand management”, “demand planning”, and “forecasting”.

The 3 Types of Supply Chain Analytics

The Smart Software

Each plays a different role in helping you manage your inventory. Modern supply chain software lets you exploit all three helping you to reduce inventory costs, improve on time delivery and service levels, while running a more efficient supply chain.

Working on the dark side of the moon

The Smart Software

FunFacts efficient stocking ERP forecasting software inventory modeling inventory optimization kpi overstock probabilistic modeling statistical forecasting stock-out stockouts supply chain analytics

Supply Chains – A second look: What do all those initials really mean?

Enchange Supply Chain Consultancy

SKU FMCG Route to Market Dave Jordan KPI Traditional Trade S&OP Logistics Management Distribution Inventory Management & Stock Control

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Service Level Agreement Defined

The Logistics of Logistics

Sometimes, the Logistics provider has their own SLA/KPI that they want to use with any customer, but negotiation is still in order. Some Logistics providers use time/percentages to implement the SLA/KPI based on the customer’s volume. An SLA/KPI is typically used when there is a Logistics provider contract to co-sign. How do you write an SLA/KPI? What sections are typically in an SLA/KPI? Inventory Record Accuracy via Cycle Counting and Root Cause analysis.

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POST FACTS

The Smart Software

At one extreme, you can grossly overstock and never run out until you go broke and have to close up shop from sinking all your cash into inventory that doesn’t sell.

Logistics Key Process Indicators (KPIs)

The Logistics of Logistics

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. Check out another great KPI definition at About.com. I sometimes use the terms KPI and metrics interchangeably, but they are not the same. A metric is any standard of measurement (number of carriers, inventory turns, average shipment weight, etc.).

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Webinar: 10 Questions That Reveal Your Company’s True Inventory Policy

The Smart Software

WEBINAR: Demand planning, forecasting, and inventory planning need to be well-defined processes that are understood and accepted by everybody involved. The post Webinar: 10 Questions That Reveal Your Company’s True Inventory Policy appeared first on Smart Software. Please join our webinar featuring Greg Hartunian, CEO of Smart Software.

Sales, Inventory & Operations Planning (SiOP) – Part Two

Arkieva

The lack of a good forecast creates service issues, unbalanced inventories and operational firefighting costs. There is only 1 way to improve service and reduce cost and inventory in this type of situations: collaborative forecasting.

Lora Cecere: ‘All the metrics must be in balance’

Supply Chain Movement

They lack understanding of their inventory,” says Cecere. Desmet mentioned a company whose inventory turns, despite being ‘best in class’, are out of balance with profitability. This is a good example of focusing on a single KPI rather than all of them.

3 Key Multi-Echelon Inventory Optimization Challenges and How to Overcome Them

Arkieva

When it comes to inventory optimization , companies often have to play a delicate balancing game to ensure that they have optimal levels of inventory. If your forecast numbers are too high, you run the risk of holding costly excess inventory and reducing available cash on hand.

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. Now think about all of your inventory.

7 Key Factors that Underpin the Success of your Inventory Optimization Initiative

Supply Chain Opz

From the most basic to the most advanced organization, Inventory Optimization is a critical goal and one which underpins the effectiveness of the supply chain operation. Inventory Optimization requires an organization to sustain and maintain the right mix of cost versus service. In this article we will examine inventory optimization processes as part of a structured sequential journey and examine seven of the key factors in delivering the optimal mix of stock.

Sales, Inventory & Operations Planning (SiOP) – Part Five

Arkieva

Last time in Sales, Inventory & Operations Planning (SiOP) – Part Four I talked about the Supply step of the cross-functional process of SiOP. Avoid having too many reports on too many KPI’s.

What's your KPI?

Infosys Supply Chain Management

Give personal bias a rest: Devising a KPI is a challenging affair, overcoming bias adds to the challenge. My equipment billing, my equipment utilization, my inventory etc. Be latest, context driven and improve continuously: A must thing I must say, gives you a chance to introspect and evaluate, something which is critical factor in success of any KPI. Enterprise Asset Management: IT Asset Management Generic SCM assetmanagement kpi

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WMS and Cycle Counting: How to Reach Inventory Management KPIs

Veridian Solutions

Greater control and efficiency in modern warehouse management rests on the reliability and accuracy of your inventory management processes. Warehouse Managers need to understand the challenges of cycle counting, how the right KPIs can help, and how to leverage WMS and cycle counting best practices to develop the best inventory management KPIs. Which Inventory Management KPIs Are the Best? Carrying cost of inventory.

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LTL Carrier Scorecard with Key Process Indicators (KPIs)

The Logistics of Logistics

The LTL carrier scorecard with key process indicators (KPI) is an excellent tool for measuring and managing LTL performance and LTL carrier performance. 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. The KPI information should be sorted by the carriers used.

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The Top Supply Chain KPIs to Know

Cerasis

The perfect order KPI tracks the overall accuracy and timeliness of each shipment. Perfect Order KPI = On-Time Delivery and Shipment KPI x Complete Order Percentage x Damage-Free Percentage x Accurate Invoicing Percentage. Calculate the perfect order KPI by multiplying the , the complete order percentage, damage-free percentage and accurate invoicing percentage together. To calculate the perfect order percentage, one must understand the on-time KPI.

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Manufacturing Metrics that Actually Matter (The Ones We Rely On)

synchrono

If there is no direct link to cash in, cash out, inventory or operating expense, then your measurement may be an assumed measurement. Demand-Driven Manufacturing Metrics demand-driven manufacturing KPI measurement operating expense production data

Balancing Cash, Cost and Service: The Supply Chain Triangle

Arkieva

Over the last 5 years I have seen many companies launching inventory reduction programs. When launching an inventory reduction program, companies should be aware that inventory, as a part of Cash, should always be balanced with Cost and Service. We also show their typical KPI’s.

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Patterson Pope’s 5 KPIs for Managing a Warehouse

The Logistics of Logistics

Accuracy of Inventory Records. Your capacity to meet customer demands hinges on your ability to accurately report inventory. When you can account for inventory down to the item, you can better respond to customer needs. An accurate inventory accounting gives you the ability to fulfill orders in a timely manner and improve customer relationships. Further, the whole warehouse management team can reduce man hours spent hunting for inventory that isn’t there.

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Omnichannel Supply Chain Metrics: What Should Supply Chain Leaders Measure?

Cerasis

Inventory Accuracy. This is a simple key performance indicator (KPI), another name for metrics, to track. It refers to the in-stock or out-of-stock accuracy of supplier inventory. This KPI should be as high as possible, reflecting accurate inventory available for customers from suppliers. When considering the timeliness of a shipment in this KPI , you can derive an order completion metric. There is no easy way to say it; single-channel retail is dead.

EazyStock vs your ERP: Who wins the inventory management battle?

EazyStock

?. One of the most common questions we receive is “We already have an ERP inventory module. Through better inventory management, we’ve been able to support our stock management and procurement processes much better, which has even resulted in higher profits!”

What Are the Top Warehouse Management KPIs Every Supply Chain Exec Should Measure

Cerasis

You need to monitor inventory turnover, the carrying cost of inventory and the average inventory value, explains Paul Trujillo of Business 2 Community. Carrying Cost of Inventory = Inventory Carrying Rate (How Long a Product Stays in the Warehouse) * Average Inventory Value.

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Real-World Scenario: Best Practices for Warehouse Contracts: Part One

Cerasis

What are the major KPI’s to be followed under the below attributes: Cost or Cost Savings. Lean is DAILY continuous improvement, pull systems to reduce inventories (versus push that increases inventory), Lean Six Sigma to improve quality to.003 per million touches (almost ZERO DEFECTS). Metric: Goal/KPI: Zero quality reports upon the receipt of goods at Warehouse or ultimate consumer; Embedded 3PL rep to help improve 3PL service by monitoring 3PL deliveries and daily service.

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