Metrics that Matter: Inventory Effectiveness

QAD

The effective use of a manufacturer’s inventory investment is an important determinant of the company’s success. Excess and obsolete inventory is a drain on resources, as is excessive safety stock. Managing an Inventory Investment. Inventory effectiveness measures the process that delivers the right part to the right place at the right time, while minimizing investment and meeting customer requirements. Using Metrics to Measure the Health of the Business.

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

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Modern Metrics

synchrono

Modern manufacturers have the ability to connect their software systems and machines; pulling, aggregating and analyzing data from these resources in real-time and making it visible to all. Given the more customer-centric demand-driven model – coupled with greater access to information – the metrics that manufacturers monitor to make improvements in operations become more focused and actionable. White Paper: Demand-Driven Manufacturing Metrics that Drive Action.

Time for a Supply Chain Metrics Cleaning

Logility

Ask yourself, “Are your supply chain metrics bogging you down?” ” To manage a supply chain containing complex dependencies between teams, departments and partner companies across international boundaries requires a rich set of metrics. However, companies often have too many independent metrics that can cause conflicts amongst competing supply chain functions. Functionally isolated metrics lead to sub-optimized supply chain performance.

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

synchrono

LNS Research blogger Mark Davidson said, “When it comes to metrics, it’s often said that what gets measured gets done.”. Mark also writes: “Metrics that have the attention of business and manufacturing leaders tend to be those that get measured and improved upon by their employee teams.”. But are employees being rewarded for metrics that do not in turn reward demand-driven flow and the customer signal (both real and imagined)? Metrics for Action.

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. Companies can use these metrics to help ensure they are doing everything possible to satisfy their customers at a manageable and sustainable cost. It’s easy to meet delivery expectations if you carry excess inventory, but it’s an expensive and impractical solution. Choosing Metrics.

The Future of Inventory Management

Kinaxis

by Andrew Dunbar This post concludes my inventory management blog series. Throughout this series I’ve proposed an elevated role for the inventory manager that challenges the assumption that an inventory manager is a victim of his colleagues’ business decisions and plays only a limited role in formulating inventory results. Inventory management is not a stand-alone business process that occurs after other processes are complete. General News Inventory managemen

Seven Misconceptions on Managing Inventory in a Market-Driven World

Supply Chain Shaman

When it comes to the management of inventory in value chains, frustration abounds. Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” ” I have been studying the evolution of inventory technologies as an industry analyst since 2002. Inventory is the culmination of many business decisions. The Inventory Management Journey.

Supply Chain Metrics: Make Sure They Are Aligned with Your Strategy!

Supply Chain View from the Field

Many people are talking about Key Performance Indicators, Metrics, Analytics, and other indicators of performance. The importance of selecting the right metrics or “measures” as I prefer to call them, is critical as we all know that metrics drive behaviors. Rather then selecting a plethora of meaningless metrics, it is always better to focus on a critical few, and select them wisely. Step 2 – Develop Metrics and Data Sources. Inventory Goal.

Logistics Metrics You Didn’t Know You Should Be Watching

Supply Chain Collaborator

Its absence is felt when easily avoidable yard-based delays lead to down time for manufacturing operations, product spoilage for food shippers and inventory shortages for retailers as a few examples. The critical metrics managed with YMS for improved resource planning include: Inbound and outbound dock door scheduling. Asset management/inventory controls. The post Logistics Metrics You Didn’t Know You Should Be Watching appeared first on UltraShipTMS.

New online insight hub revealed to increase intelligence resources for supply chain decision makers

EFT

The Insight Hub doesn’t just give us an opportunity, for the first time, to house all this industry leading content in one place, it also gives us the scope, resources and platform to create, commission and curate a far broader collection of business-critical intelligence than ever before. In addition, you can’t really understand the full picture of supply chain risk without listening to a webinar we ran entitled: COVID-19: Implications on Inventory Planning, Sourcing and Procurement.

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.

Thrifty Inventory Management to Save Money and Increase Profits

Unleashed

This is all very well, however to achieve this goal, inventory management needs to be a focus. If inventory management is not considered carefully as a business improvement metric, then it can insidiously become a money trap which of course will simply erode any profits to be made. This is where efficient, lean and thrifty inventory management comes in. So, try to seek out the root cause of the problem as usually, that will fix any inventory management issues.

Getting Inventory Right: Hope with Hype and Recycled Software?

Supply Chain Shaman

I am speaking this morning at the Terra Technology conference and doing a book signing of my new book, Supply Chain Metrics That Matter. In parallel, I have been hard at work on a report on multi-tier inventory optimization for the last two weeks. In the research for my inventory optimization report, the lowest level of satisfaction with multi-tier inventory optimization is with clients of the SAP inventory solution (previously purchased from SmartOps).

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.

Why Have We Not Reduced Inventory?

Supply Chain Shaman

This year supply chain leaders will celebrate thirty years of progress in supply chain management; but we have not made progress on one of the funamentals: inventory management. I think that it is time for us to take the litmus test and ask the hard questions, “Have our practices impacted days of inventory? Have the early adopters of inventory optimization seen a reduction in inventory on their balance sheets?” Ownership of Inventory as a Metric.

Inventory Turnover – A Formula For Achieving Game Changing Results!

Supply Chain Game Changer

As we have discussed in other blog posts we have tackled Inventory Turnover several times, amongst many other challenges. Your challenge may be trying to improve Inventory performance or trying to create a transformational improvement in some other area. You will likely come across obstacles whether they be sacred cows, resources, individuals or processes for which some level of Executive support will be necessary to overcome. Subscribe Here! Email Address.

Why Demand-Driven Manufacturing is Focused on Metrics for Action

synchrono

There are two subordinate measurements: Inventory and Operating Expense. These three measurements cover the gambit of what needs to be measured because they are directly related to customer orders, cash captured inside the organization, and the cash it takes to turn inventory into sales. Demand-driven managers know that having too many metrics leads to conflicting measurements. We call these Metrics for Action. Metrics for Action. Driving Continuous Improvement.

Excess and Obsolete Inventory: You’re All Responsible for It!

NC State SCRC

The Supply Chain Resource Cooperative held its first ever “Executive Roundtable on Excess and Obsolete Inventory” on the NC State campus on October 25, 2017. In the end, excess and obsolete inventory occurs because of mistakes, mis-aligned decision-making, and lack of consideration of the cost of inventory in countless decisions, including product design, sales forecasting, sales and operations planning, and lack of awareness. Measure life cycle inventory cost.

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?

Double Inventory Turnover In 9 months!

Supply Chain Game Changer

World Class Inventory Turnover Breakthrough Elements! “If we are truly a Supply Chain Services Company, then why is our Inventory Turnover only at 7?”, I had just joined the company and in studying their financial performance it stood out to me that if we were truly a Supply Chain Services company then having only 7 Inventory turns was extremely uninspiring. Could we double inventory turnover? Setting the Target to Double Inventory Turnover.

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. The WMS guides the overall order and inventory replenishment on the factory floor. The Software is usually used alongside or integrated with a Transportation Management System or an Inventory Management System. 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. The WMS guides the overall order and inventory replenishment on the factory floor. The Software is usually used alongside or integrated with a Transportation Management System or an Inventory Management System. Easy-to-follow metrics.

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. According to Chris McLaughlin at LeanCor , a lean consulting company, Inventory Carrying Cost (ICC) is estimated to be an astonishing 18-25%. Now think about all of your inventory. THE INVENTORY QUALITY RATIO.

Double Inventory Turnover In 9 months!

Supply Chain Game Changer

Check out World Class Inventory Turnover Breakthrough Elements! “If we are truly a Supply Chain Services Company, then why is our Inventory Turnover only at 7?”, I had just joined the company and in studying their financial performance it stood out to me that if we were truly a Supply Chain Services company then having only 7 Inventory turns was extremely uninspiring. days of Inventory in the company. Excess and Obsolete (E&O) Inventory .

Do Supply Chain Planning systems generate any value?

Kinaxis

The issue is that none of their IT investments in the last 10 years have moved the needle on operational metrics such as inventory levels, case fill rates, and other operational metrics. As technologies evolved over the course of the last decade, there was a promise that investments in software like Enterprise Resource Planning (ERP), Supply Chain Planning (SCP) or Business Intelligence (BI) would improve corporate performance.

You are Here!

synchrono

Waiting – Time spent waiting for the resources or materials needed to complete the next step. Inventory – Excess material and WIP. Here are a couple of recently published resources that can help you get started: How SyncKanban Addresses the 8 Types of Waste in Lean. Each of these types of waste has at least one metric associated with it. Remember, you don’t need to measure every one of these metrics. The Lean Journey Often Starts with Inventory.

4 Ways Big Data is Changing Inventory Management

EazyStock

Big data exists in real-time and involves prompt access to data, alerts and inventory management and control metrics through cloud computing systems. This information may include inventory levels, customer information, sales and other basic data that can be moved onto one file. 4 Ways Big Data is Changing Inventory Management. In the area of inventory, we identified 12 questions one has to examine and answer to determine how well your business manages inventory.

Increase Throughput by Replacing Manufacturing Productivity and Efficiency Metrics with These Two KPIs

synchrono

Manufacturing productivity is a useful metric for measuring the health of manufacturing at a national or global level because it tells us something about whether our factories, in general, are working or sitting idle. But at the level of the individual factory, productivity as a performance metric can be problematic. Productivity is computed by dividing average output per period by the total costs incurred or resources (capital, energy, material, personnel) consumed in that period.

How Do Inventory Risks Impact Your Business?

Unleashed

Understanding the types of inventory risks that may be impacting your business will shed light on the best strategies to mitigate against these risks for your inventory control needs. Types of inventory risk. There are different types of inventory risks that threaten every inventory manager. Let’s take a look at the impact of inventory risk on both the supply and demand of inventory stock. Mitigating inventory risks.

Insights into ERP systems in supply chain planning and implementation

Kinaxis

In my interview we discuss how to define enterprise resource planning (ERP) systems in supply chain planning, the reasons why we need ERP systems, problems faced with implementation and how to successfully implement a new ERP system in a corporation. It also looks at the inventory file that your planned order is coming in, purchase orders and shop orders that you’ve already got scheduled. So you go through and implement general ledger, ARAP, the human resource type modules.

System 133

Your supply chain is costing you money – Reason #3 Not having end-to-end supply chain visibility

Kinaxis

So a scheduler at one plant has no visibility as to the inventory position, capacity or material supplies at another plant. In our drop in situation, you could have sufficient inventory at a different site but never know it because you can’t see it. You cannot look at aggregated data without running specialized reports or extracting the data and loading it into a BI tool.Visibility also means understanding the impact of your decisions on key corporate metrics.

9 More Warehouse Key Performance Indicators for 2020

Veridian Solutions

For instance, the cost of carrying inventory tells you how much you will spend (as a percentage) to hold and store your inventory annually. When you need to reduce your cost of carrying inventory, it’s important to reduce your inventory by eliminating obsolete, slow-moving, or dead stock inventory. . Internal Operations—Inventory Carrying Costs: Calculating inventory carrying costs is perhaps the most important metric of all.

The Rewards of Supply Chain Transformation: Avaya’s Journey

Kinaxis

This meant a lot of resources were going into gathering, sorting and translating data , leaving little time to garner any intelligence or make any change or improvements for the business. It not only impacted key operational metrics (like reducing gross inventory levels, improving inventory turns and reducing cash-to-carry cycles) but also had a huge impact on corporate culture. by Meranda Powers Change, even under the most ideal circumstances, is difficult.

Your supply chain is costing you money – Reason #8: Keeping supply chain information in silos (and preventing your users from making the best decisions)

Kinaxis

Reason #6 Not effectively managing inventory. In today’s competitive manufacturing environment, the only metrics that count are how a change impacts the company’s goals. What if in addition to the late items, the CSR had information about who was responsible for the items or resources that were late. by John Westerveld. Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money.