The Most Important Distribution Center Metrics to Track and Understand

GlobalTranz

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.

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

GlobalTranz

The answer lies using these omnichannel supply chain metrics to carefully track and improve operations continuously. 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. Other Critical OmniChannel Supply Chain Metrics to Track.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

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

GlobalTranz

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.

The 10 Procurement Metrics that Matter in 2021

Unleashed

This is often managed with the help of supplier management software or inventory management software. That’s where Procurement Metrics and Key Performance Indicators (KPIs) come into play. In this post, we’ll unpack ten top procurement metrics and why they matter.

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.

Replenishment 201: Monitoring Store-Level Inventory

SupplyPike

This month, we thought we’d dig in a little deeper and look into monitoring store-level inventory. It’s important to keep track of your traited and valid store counts to ensure you have sufficient inventory to cater to these stores (and especially if the store count changes).

Business Intelligence vs. Inventory Optimization: Are You Solving Symptoms Instead of the Real Problem?

ToolsGroup

In my decades of working in replenishment and inventory optimization, I’ve noticed that many companies seek solutions to symptoms rather than the underlying problem. They want to have an aging report for inventory or a report on vendor performance.

What are Ecommerce Shipping Zones?

Supply Chain Game Changer

Shipping Zones article originally published by, and permission to publish here provide by Jake Rheude at redstagfulfillment.com. Carriers such as FedEx, UPS, and USPS use shipping zones to determine the shipping cost of a package. Shipping Zone Definition. Subscribe Here!

10 Inventory Metrics You Need to Know Right Now

EMERGE App

You can with inventory metrics. Why should you care about inventory metrics ? We think these are the top 10 inventory metrics that you need to know right now. Top Ten Inventory Management Metrics. Inventory Turnover. Inventory Accuracy.

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. What is vendor-managed inventory? The benefits of the vendor-managed inventory process include: Enhanced visibility for vendor. Maintaining optimum inventory levels.

6 Signs Your Business is Achieving Efficient Inventory Management

Unleashed

Did you know that better inventory management and control is one of the biggest parts of running a successful business and yet it is one that is often put on the back burner for misconceptions of that it is not a major profitable pursuit? Business owners know that holding inventory stock ties up a lot of cash, that’s why good inventory management is crucial for all businesses. When your inventory stock dips below the pre-set levels, you know it is time to order more.

SanDisk’s Story of Customer Segmentation Strategies Using Inventory Postponement

Supply Chain Shaman

Instead, in the SanDisk journey , they adjusted the speed of response to their customer segments, and actively designing inventory postponement strategies. The supply chain is vertically integrated and global shipping almost 2 million units daily. As I sat with the team, and discussed the future of supply chain, they impressed me with their by their use of planning tools and their process diligence on building inventory strategies to enable a customer-segmented supply chain.

How to calculate safety stock – with formulas and examples

Unleashed

Ideally, once a safety stock figure is set for each product, an inventory management system such as Unleashed is used to manage stock within ideal levels. Safety stock is a buffer of inventory held to protect against stock-outs.

A New Decade: Give Science A Chance

Supply Chain Shaman

Only four percent of companies compared to their peer groups improved balance sheet performance of growth, operating margin, and inventory turns. When compared to pre-recession years, we ended the decade with twenty more days of inventory. Days of Inventory Comparison.

The Supply Chain Detective™ and the Inventory Turnover Mystery!

Supply Chain Game Changer

Featuring Our 10 Best Inventory Management Articles! As I settled into the job and started learning, and studying, the various Supply Chain metrics I was surprised when I looked at the Inventory Turnover performance of the company. The Inventory Turnover Mystery had been solved!

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.

Parsing McLane’s inventory and order data for suppliers

Alloy

Visibility improves inventory management and more. With visibility into McLane’s inventory and shipments, brands can better predict orders and adjust production as needed to fill them. That meant McLane didn’t have enough inventory to cover retail positions.

Data 52

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.

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.

What is SKU? A complete guide to Stock Keeping Units

Unleashed

SKU codes are everywhere – built into sales and inventory management platforms, and broken down line-by-line in all sorts of inventory report. The process is sometimes also referred to as inventory optimisation, or product optimisation. Improve inventory forecast accuracy.

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. A Guide to the Warehouse Metrics Supply Chain Execs Should Track. Which Inventory Management KPIs Are the Best?

KPI 43

Inventory and forecast data from retailers: After your product ships (Part 2)

Alloy

Without this visibility into available inventory and focus on looking ahead to the future, you’ll find it hard to deliver the data-driven recommendations that retailers are looking for from their top partners. It’s a very useful number that can itself signal action needs to be taken, such as if Units on Hand drops to zero, indicating a location is out-of-stock and additional product should be ordered or shipped. a case of phantom inventory that brands also need to watch out for.

DC 40

4 inventory replenishment methods

6 River Systems

Maintaining proper inventory levels is critical if you want to keep your customer satisfaction rates high. The average American retailer has an inventory accuracy rate of 63%. And another 34% of businesses ship orders late due to out-of-stock issues. Using the right inventory replenishment methods. These rules and processes are also used to determine how much stock to add to your inventory by reordering and how much back stock to move to your active inventory.

Why Financial Reengineering Does Not Equal Supply Chain Improvement

Supply Chain Shaman

Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. The concept of the Effective Frontier is that best in class companies align functional metrics to balance growth, cost, inventory and Return on Invested Capital (ROIC) performance while balancing customer service metrics. Ironically, most companies are very entrapped in measuring and rewarding functional metrics which degrades overall improvement.

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.

Actionable Insights: Inventory Expired and Expiring

QAD

Next, we will provide an overview of the Inventory Expired and Expiring Action Center as well as the associated key performance indicators (KPIs). When inventory has a shelf life, it’s critical for the company to keep tabs on upcoming inventory approaching its expiration date.

3 Ways to Accelerate Your Inventory Management

RFgen

TABLE OF CONTENTS: The Current State of Inventory Management. Integrate and Optimize Inventory Workflows. Implement Inventory Management Software. Integrate ERP Data with Inventory Processes. The Current State of Inventory Management. Increased inventory visibility.

A Handy List of Keys to Careful, Comprehensive Inventory Management

Supply Chain Action Blog

I’m sure there are a lot of ways to summarize a careful, comprehensive approach to inventory management. A ccess information and use it instead of inventory. The more you are able to accurately anticipate the demand from your end customer in the marketplace, the more you will be able to move, make, buy, and store the inventory that will sell quickly. This is perhaps the simplest, but yet most difficult aspect of careful, comprehensive inventory management. .

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.

23 Reasons the Ideal TMS is best for LTL Freight Shipping

GlobalTranz

Using less-than-truckload for medium-sized shipments is one of the great innovations in shipping. It produces results at a fraction of the cost of full truckload (FT) or small package shipping. However, the needs of the modern shipping industry have reached an optimal point, and the only way to further push the envelope is by using a dedicated transportation management system (TMS). As a result, the amount of inventory can be managed to reflect the consumer demand.

The Most Important Metric for Increasing Revenue

Unleashed

Average Order Value (AOV) is one of the few important metrics for businesses to analyse and track to gain an understanding of their current revenue and how they may increase it. Facilitating ease and accessibility through free shipping and a smooth returns process is a great way to encourage a purchasing decision in those customers who are faltering. Sometimes offering something such as free shipping is all the comfort they need to commit to a purchase.

How to Calculate Inventory Turnover

Unleashed

Inventory management is a critical function of any business, with drastic implications on profit margins. Inventory turnover is a key formula that’s often discussed in the context of inventory management efficiency, and crops up in most types of inventory report.

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?