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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? On-Time Shipping.

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

Cerasis

3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. Inventory measurement is critical and it is money after all in that it took a capital expense to procure. The goal is to keep inventory levels at a minimum to meet customer needs. Review Inventory turns and Return on Assets. For clarity, in measuring supply chain performance, we should be focusing on: inventory, working capital, and time.

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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.

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. This measures the number of orders or order lines shipped on time and without backorders or shortages. This is calculated by dividing the total number shipped in full and on time by the total number scheduled. Improving forecast accuracy can help improve DIFOT without increasing inventory.

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. But the sheer complexity of supply chain networks, and the impact design decisions have on operational performance, makes supply chain inventory management aligning inventory investments with on-time customer delivery and margins a major challenge. Implementing inventory optimization.

Lean Manufacturing: Is it Really Worth It? 16 Big Benefits Say, “Yes.”

Cerasis

Customer expectations of reliable quality and rapid delivery forces today’s manufacturers to either shorten cycle times or lose business. There are multiple good models for lean manufacturing operations. Who Needs Lean Manufacturing? A company in need of lean manufacturing practices tends to be easy to identify, typically displaying multiple of the following symptoms of operational deficiency: Inventory amasses in buffer stocks. cuts inventory costs.

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Six Ways Warehouse Inventory Management Software Optimizes Efficiency

IQMS

The Warehouse Inventory Management Software market grew to $1.4B Warehouse Inventory Management software and systems help reduce infrastructure costs and enable the reallocation of existing IT resources to drive productivity improvements, according to IDC. Warehouse Inventory Management Software is seeing increased adoption as manufacturers expand globally through mergers, acquisitions, and regionally-focused manufacturing strategies.

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

Kinaxis

Among the many supply chain initiatives taking place today, vendor-managed inventory (VMI) has become an increasingly effective process and business model to help organizations share risk and information between vendors and customers — while benefitting from lower stockouts, reduced uncertainty and lower costs. As with any industry, food and beverage faces its own unique set of supply chain challenges, including: Expiring ingredients, manufactured product and packaged goods.

Which Metrics Matter? Interview with Philippe Lambotte

Supply Chain Shaman

My journey to understand supply chain Metrics That Matter started three years ago. When I sat down to write the book, Bricks Matter, I believed that companies had used supply chain technologies to reduce operating margin and improve inventory turns. 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.

The Go-To List of Ways to Improve Inventory Management

Veridian Solutions

Today’s warehouse managers need better inventory management strategies. This is nothing new, but as the world has evolved, the ability to improve inventory management has evolved in stride. Supply chain leaders should follow these key strategies for ways to improve inventory management. Reduce On-Site Stock by Leveraging Drop Shipping. The best way to gain improved accuracy and insight into your inventory is to eliminate it from your purview.

Manufacturers, Technology, and the Digital Age

Enterra Insights

Manufacturers have historically found themselves at the cutting edge of technological advances. It’s surprising, then, to read stories encouraging manufacturers to jump aboard the Digital Age technology bandwagon. ” He noted, “Each of these technologies will fundamentally change how products are manufactured.” 2] It makes perfect sense that manufacturing must adapt to the digital age. Manufacturing Cycle Time.

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. 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. It helps manufacturers effectively control and administer warehouse operations right from the entry of goods or materials into the warehouse until they move out. How can a Warehouse Management Software help manufacturers?

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

synchrono

Jessica Twentyman reported in the Financial Times , that for many manufacturers, supply chain collaboration is stuck in the dark ages. When it comes to ordering materials and components, managing inventory levels, or organizing the delivery of finished goods to customers, companies are forced continually to chase business partners – mostly suppliers, logistics companies, and retailers – via a messy stream of emails, phone calls, and even faxes.

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Wanted: Supply Chain Architects!

Supply Chain Shaman

Let me start with a true confession: I am a manufacturing gal. I relished the sound of a manufacturing line when I opened the door of the factory in the morning, and I liked managing inputs so that we could maximize outputs. Manufacturing is the foundation of my interest in supply chain management. In manufacturing, I became good at labor bargaining. This was the beginning of my journey from manufacturing to understanding larger supply chain concepts.

[INFOGRAPHIC] Optimize Manufacturing Operations with these 5 Golden Manufacturing Metrics

Cerasis

Editor's Note: As a third party logistics company with a focus on better Less-Than-Truckload (LTL) freight management, we have several shippers who are in the manufacturing industry. Our job at Cerasis is to optimize transportation management for these manufacturing shippers so that in turn, they can focus on their own core, the process of manufacturing. We relay on guest bloggers and the expertise of others for manufacturing best practices.

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. Be sure not to penalize or reward suppliers based on your choice of shipping method. Specific Quality Metrics. Inventory Levels.

Safety Stock Calculation For Your Wholesale & Distribution Business

EMERGE App

It commonly describes the additional stock that you keep in your inventory to reduce the risk of stockouts. You are wholly dependent on your suppliers, both local and overseas, to produce and ship the goods that you carry. Optimal Inventory Level. Introduction.

Digital Inventory Management Key Battleground in Transformation of Brick-and-Mortar Retail

Veridian Solutions

As e-commerce growth accelerates, shippers are working overtime to manage available inventory. It catalyzed brick-and-mortar retailers to offer online shopping opportunities, which require much more than manual inventory management practices. As a result, brick-and-mortar retail has become more focused on digital inventory management, a building block in the road to omnichannel supply chains , than in the past. A Guide to the Warehouse Metrics Supply Chain Execs Should Track.

Supply chain risks in the spotlight: Effects of Hanjin Shipping filing bankruptcy protection

Kinaxis

by Dr. Madhav Durbha Supply chain risks in the spotlight: Effects of Hanjin Shipping filing bankruptcy protection. A few days ago, the world’s seventh largest container shipping company by volume, Hanjin Shipping, filed for bankruptcy protection. A lot of the products being shipped by Hanjin are headed to US and European retailers getting ready for the holiday season (toys, electronics, clothing, furniture, etc).

Logistics Management Software – A Complete Handbook for Manufacturers

ThroughPut

From a manufacturing perspective, logistics management software facilitates effective planning of the supply chain itself and implementation of the final delivery to the end consumers. The role of logistics management software here is to create a viable solution that can help manufacturers easily manage the flow of things for better accuracy, to ensure that the right product reaches the right person at the right place and time. Inventory tracking and management.

Logistics Management Software – A Complete Handbook for Manufacturers

ThroughPut

From a manufacturing perspective, logistics management software facilitates effective planning of the supply chain itself and implementation of the final delivery to the end consumers. The role of logistics management software here is to create a viable solution that can help manufacturers easily manage the flow of things for better accuracy, to ensure that the right product reaches the right person at the right place and time. Inventory tracking and management.

Logistics Management Software – A Complete Handbook for Manufacturers

ThroughPut

From a manufacturing perspective, logistics management software facilitates effective planning of the supply chain itself and implementation of the final delivery to the end consumers. The role of logistics management software here is to create a viable solution that can help manufacturers easily manage the flow of things for better accuracy, to ensure that the right product reaches the right person at the right place and time. Inventory tracking and management.

How Machine Learning Is Redefining Supply Chain Management

IQMS

Key factors influencing inventory levels, supplier quality, demand forecasting, procure-to-pay, order-to-cash, production planning, transportation management and more are becoming known for the first time. The machine learning algorithms in IBM’s Watson platform were able to determine if a shipping container and.or The manufacturing industry leads all others in the volume of data it produces on a yearly basis.

Control Towers: If Only There Was A Clear Definition

Supply Chain Shaman

Contract manufacturing or 3PL data often will have a 24-hour latency due to batch integration. When they built the project, they did not realize that they did not have access to daily data daily for their third-party warehouses and contract manufacturing locations. I was at a customer last week that shipped to distributors and did not know the site of customer facilities. The focus is on functional metrics, but are unable to get to overall supply chain metrics.

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Supply Chain KPIs You’ll Want Every Morning

Logility

Failed SCM implementation causes shipping errors. WMS failure causes Adidas to under ship by 20%. in inventory write-down and 20% drop in stock value. Metrics. COGS, Total Supply Chain Cost, Productivity, Returns Rates, Carry Cost of Inventory.

3 Technology Companies Disrupting Shipping

FLEXE

Basically, responsible for ocean freight carriers, ocean ships that rely on truck companies. Shipping a 40-ton container back in July or June used to cost about $700 — a 40-ton container. More than half of Hanjin’s ships were chartered. So the chartering companies are already receiving the ships back and they need to rent them. MSC is interested to charter those ships. Those are indications that they don’t run a tight ship.

How Microsoft & ThroughPut are helping Global Manufacturers increase Output during the COVID-19 Pandemic, and how every Operations Professional can help

ThroughPut

Automotive manufacturers are remobilizing to produce ventilators. In fact, in the last 6 weeks alone, I have personally been to the front lines of Yokohama, Milan, New York, and San Francisco , working alongside some of the world’s most professionally-committed food manufacturing & distribution, plastics manufacturing, and industrial operations personnel. Our constraint is not our ability to help global manufacturing at scale, but to help global manufacturing in time.

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

Supply Chain Shaman

As a country, I think that we need to rethink supply chain flows for chassis, drayage and the unloading of larger ships. I don’t think that the ports are up to the challenge of moving the high-levels of freight with larger ships without rethinking unloading space, equipment and flows. It takes 2 to 3 days to unload a ship. Today, the number of chassis required for a ship is between 2,000 and 5,000. The ships are getting larger.

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. Let’s take a look at how the TMS impacts the costs of shipping over the long term in four critical areas. Overall Costs of Less Than Truckload Freight Shipping. For an organization to justify the cost of using Less than truckload freight shipping, the topic of return on investment usually crops up.

Top Logistics Terms to Know—A Supply Chain Glossary

Zipline Logistics

These are a la carte, or per service, and outside of standard shipping and receiving. Carriage — In maritime shipping, carriage refers to the movement of cargo on a vessel after loading and before unloading. Co-Manufacturer (Co-Man) — A third-party partner that produces goods from raw materials or semi-finished materials on behalf of its client. Collect Shipping — A type of billing that charges the consignee with freight costs rather than the consignor.

Who Should Be In The Winner’s Circle?

Supply Chain Shaman

Only 29% of manufacturers easily manage total cost trade-offs. Total cost analysis is more difficult than it sounds and most technology implementations automated functional measurement systems (manufacturing or procurement), but leave the organization blind on the management of total costs. The first step was to charter a research project with the Arizona State University statistics department to analyze which combination of metrics drives the highest market capitalization.

How Supply Chain Planning Can Create Profit in a Declining Market

ToolsGroup

It bought its main rivals to become North America’s largest fine paper manufacturer. [1] Mohawk’s SVP of supply chain John Angleson described the scale of the challenge: “The relationship between the manufacturer and distributor in the paper business has typically been characterized by various forms of manipulation, both positive and negative. They also cut inventory levels, grew sales and resolved capacity issues.

Supply Chain Visibility and the Bottom-line

synchrono

Rick Morris, a Certified Supply Chain Professional wrote in Supply House Times that while improving fill rates, improved forecast accuracy also lowers inventory levels measured in days of sales; and simultaneously , improved forecast accuracy improves fill rates and lowers inventory. These improvements in inventory efficiencies then translate into improved financial metrics, including 10% improvement in earnings per share; 5% increase in return on assets; and a 2.5%