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

GlobalTranz

Editor's Note: As of late you may have noticed we have written a lot about procurement and the future of procurement. A large part of procurement is finalizing the contract and then the follow through of the determined deliverables in that agreement. The next step in procurement is then managing vendors and keeping service providers accountable for continued improvement. 9 Key Topics to Understand to Frame A Shipper's Mind for Effective KPI Management.

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Procurement vs. Purchasing: Similar but Different

Precoro

Purchasing? Or procurement? Although quite similar, procurement and purchasing are two distinctive processes , and understanding the difference between them can help facilitate your organization’s success. Purchasing and Procurement at a Glance. Procurement.

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Know Your Supply Chain KPIs – Procurement

Logistics Bureau

On this blog and the one published by our sister company Logistics Bureau, we often receive questions relating to metrics suitable for monitoring procurement performance. 7 Procurement KPIs You Should be Using. Emergency Purchase Rate. Purchase Order Cycle Time.

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. Cost as a percentage of sales (Logistics or Supply Chain). What’s a KPI, Anyway? KPI stands for Key Performance Indicator, and can be defined as a practical and objective measurement of progress, either: Towards a predetermined goal, or. Cost of goods sold.

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Student projects focus on supply management segmentation, risk analytics, and predictive cost models.

Supply Chain View from the Field

They focused on beginning with category spend, and driving down to specific actions in terms of KPI’s, prioritization of resources, and optimization of the relationship through collaborative approaches. One of the issues they came up with was the relative weighting of different categories, which included the highest rated being quality, cost, risk, on-time delivery, and information sharing. A John Deere team discussed how they attempted to build a predictive cost model.

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

GlobalTranz

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. We started the series first by " 9 Key Topics to Understand to Frame A Shipper’s Mind for Effective KPI Management with a 3PL." KPIs or Key Performance Indicators are a core practice of measuring the effectiveness and for continuous improvement in any business outsourcing model.

The 10 Procurement Metrics that Matter in 2021

Unleashed

What is procurement? In simple terms business procurement is the process of locating and acquiring goods and services from external sources for the business to use. Procurement activities include planning, sourcing, and negotiation, along with risk management, legal and value analysis.

Get the Procurement Analytics Advantage with SAP S/4HANA

Bristlecone

Did you know that advanced analytics, when used in lieu of traditional statistical models, can help procurement departments increase cost efficiency by 3-8%? [1]. Procurement leaders are increasingly turning to SAP S/4HANA as their solution of choice.

Top 16 Procurement KPI – The Ultimate Guide

SCMDOJO

Nowadays, no one could deny that, businesses today expect procurement teams to drive value beyond cost savings. As a consequence, procurement leaders are constantly looking for ways in order to enhance their procurement process and make it more sustainable. Procurement.

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In Search of Procurement’s North Star!

Supply Chain Game Changer

Featuring Our 12 Best Procurement Articles! Procurement’s North Star article and permission to publish here provided by Sam Jenks. What exactly are you and your procurement team working towards? What is Procurement’s North Star Metric? Subscribe Here!

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. There are many pricing levels: unit rate pricing, hourly pricing and eventially cost-plus amd management fee pricing. As a contract customer, upfront costs will be a subject of discussion and negotiation. You should also have a Modification Clause wherein you can modify the SLA/KPI/ Contract and Prices in 30-60-90 days.

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. This is a simple key performance indicator (KPI), another name for metrics, to track. This KPI should be as high as possible, reflecting accurate inventory available for customers from suppliers. If vendors fall behind on this metric, you may need to re-evaluate your partnerships or expand your list of approved vendors.

7 KPIs Your Procurement Team May Be Ignoring!

Supply Chain Game Changer

Procurement bridges the gap between product, internal stakeholders and customers. In order to support the weight of internal and external expectations, Procurement teams must be prepared to perform as a key value adder within an organization. Meeting expectations at the door isn’t always the easiest task, especially when those expectations can be wide sweeping (example: minimize cost). Developing KPIs is crucial, and individual, to the infrastructure of your Procurement team.

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? Cost Reduction agreements over time.

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Setting KPIs for your procurement department

Taulia

The procurement process is a critical business function, but how do you measure how effectively the process is managed in your business? Setting KPIs for your procurement department can help to demystify their performance and deliver insights into where improvements can be made.

January 2022: Maximize service levels and minimize inventory costs

The Smart Software

Please join our webinar and learn how to plan optimal inventory levels and purchase quantities for thousands of items when demand is intermittent, constantly changing, or affected by unexpected events.

5 Reasons why eAuctions Drive Better Savings

SCMDOJO

eAuctions are online real-time dynamic discussions between one purchasing organization and a group of pre-qualified vendors competing for the purchaser’s trade. General Cost Reductions: Maybe it is just one of the advantages of eAuctions, but it is still significant!

32 KPIs That Drive Inventory Optimization

Silvon Software

But a large inventory has its own liabilities such as cost to store and insure it, along with the risk of spoilage, theft and damage. Key performance indicators (KPIs) in inventory management are metrics that help you monitor and make decisions about your stock.

Top 6 Supply Chain KPIs: Keep Your Dashboards Simple

Logistics Bureau

These key metrics become your organisation’s “multi-function display” and give you the primary data needed to monitor and manage “normal flight conditions.” Unlike most of the KPIs we recommend, perfect order is a composite of several elementary metrics.

How Manufacturers Are Capitalizing On Sales Metrics & KPIs

Silvon Software

In today’s dynamic business environment, a well-designed sales analytics program can easily become a competitive advantage for manufacturers by allowing them to quickly adapt to changing market conditions, trends and customer demands. Every sales KPI needs a clearly defined goal.

Actionable Insights: Purchasing Commitments and Spending

QAD

Next, we will provide an overview of the Purchasing Commitments and Spending Action Center as well as the associated key performance indicators (KPIs). When analyzing purchasing performance, it helps to understand the difference between spend and commitment.

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Assessing the True Return of Procurement Transformation on Total Shareholder Return: A Tough Proposition

NC State SCRC

In my earlier book with Gerard Chick on “ The Procurement Value Proposition “, we advance the notion that buildoing a business case for investing in people, process, and technology improvement in procurement is key. Many procurement assessments developed by consultants seek to provide an answer to the question “how far along are you relative to your peers in your procurement transformation journey”, and “which processes are lagging compared to your peers?”

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)? Count the cost. Metrics for Action.

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. Perhaps this is why, so many LTL shippers make purchasing decisions based on price alone. Key Process Indicators vs. Metrics. A metric is any standard of measurement (number of carriers, inventory turns, average shipment weight, etc.). This means that while all KPIs are metrics, not all metrics are KPIs.

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

GlobalTranz

The average Supply Chain management professional measures their Supply Chain by reviewing cost reduction. Is cost reduction all that there is in measuring Supply Chain performance? Sure, supply chain cost reduction is important in reducing the cost of goods sold (COGS) and increasing profit, but there are other measurements which should not be forgotten. 3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. We still focus on costs.

Supply Chain Metrics To Avoid Before It's Too Late!

Supply Chain Opz

Supply Chain Metrics are one of the most important best practices in supply chain management because " You can''t manage what you can''t measure ". However, under certain circumstances, metrics are not used or implemented properly. This article will explain to you 7 kind of supply chain metrics that you should pay special attention to. For example, when warehouse staffs pick the orders faster, cost per order can be reduced. It''s the inventory metric).

Actionable Insights: Purchasing Inventory Effectiveness

QAD

In our previous Actionable Insights blog , we discussed the Equipment Cost Action Center. Next, we will provide an overview of the Purchasing Inventory Effectiveness Action Center as well as the associated key performance indicators (KPIs).

Walmart OTIF Fundamentals

SupplyPike

Walmart suppliers are no longer graded on a single OTIF metric, though it is still tracked and available. Rather, you must meet each OTIF-related metric to avoid fines. This is the total ordered quantity listed in the CTT segment on the EDI 850 Purchase Order. OTIF Metrics.

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Sustainable Procurement Leaders

EcoVadis

19/05/2010: Interview with Luca Guzzabocca, head of Logistics Costs and Supply Chain Management at GRUPPO MONTEPASCHI. 1) Why is Sustainable Procurement important for GRUPPO MONTEPASCHI? Sustainable Procurement is one of the significant engagements GRUPPO MONTEPASCHI has in CSR policies. For GRUPPO MONTEPASCHI, Sustainable Procurement is important because we are aware of the impact we can have by changing the way we procure goods and services.

3 Practical Metrics for Supplier Performance Evaluation

Logistics Bureau

Regardless of advances in business analytics therefore, I still advocate a measured approach to measurement (pun intended), by way of a carefully chosen handful of KPIs which are meaningful and actionable. Supplier Performance Metrics for Every Organisation. In this post, you’ll find some suggested metrics for supplier performance evaluation and management. Example: Purchase order quantity in current month = 200,000 units, Quantity received = 199,880 units.

Digital Transformation Journey in Supply Chain Planning

Solvoyo

Digital commerce efficiently requires the digitalization of many customer-facing operations and sourcing and procurement. The First Step: Bring all the data together and ensure analytics and planning can happen on the same platform. . Modeling the impact of weather events.

Freight Benchmarking: What Is It? Why Do It?

Logistics Bureau

There are several advantages to understanding your freight costs compared to the market generally. In reality, few freight and shipping teams have the time, resources, and clout to extract information from their peers about freight costs, let alone from competitors.

6 Critical Supply Chain KPIs!

Supply Chain Game Changer

Supply chain key performance indicators and metrics are ways in which someone can quantify the performance of their company’s supply chain to gain a better understanding of its strengths and weaknesses. Total Supply Chain Cost. Procurement Cost. Subscribe Here!

Five Steps to Launch a Supplier Scorecard

Logility

A good KPI will be measurable against some benchmark or criteria. If you can’t identify an outcome and a strategy to relate to the KPI, then you’ll be wasting time on data collection and analysis. 3 Get the metrics right. Supplier metrics should be captured about monthly.

13 Amazing Logistics & Supply Chain Mobile Applications

EazyStock

In today’s competitive business environment, getting the correct products to the right place at the right time via the most cost-effective manner is paramount for your business’ success. EazyStock in a cloud-based inventory optimization tool that systematically reduces excess and obsolete stock levels (bad inventory) from your warehouse locations to reduce costs while increasing the availability of your faster turning more profitable items (healthy inventory).

ERP inventory management – how advanced is your ERP?

EazyStock

ERP systems typically allow companies to undertake tasks such as purchasing, production planning, service delivery and customer management – all from one single platform. This takes into account sales volume as well the unit cost of the product. Cost-efficient ordering.

Who is Your Best Supplier?

Supply Chain Game Changer

Some procurement professionals can quickly identify their key, or champion, supplier partners. As you may know or experience, the complexities of a global supply chain and global supplier base can pose challenges for even the most mature of procurement organizations. Subscribe Here!

Supplier management KPIs

Taulia

The supply chain activities involved in the procurement process , from sourcing the right suppliers to taking delivery of materials and products, are vital to the overall health of any business. Companies with an efficient and effective supplier management process are much better placed to obtain goods and materials of higher quality and at lower cost, in a more reliable and timely fashion, than those without. Metric: The number of disputes divided by the number of orders placed.

The 10 Most Crucial Inventory Performance Measures for SMEs

Unleashed

These are the 10 most crucial metrics for SMEs – so you can get started on reducing inefficiencies and cutting costs. Using inventory performance metrics can lead to: Happier customers – who get what they want, when they want it, at the price they’re willing to pay.

What Is On Time & In Full (OTIF) And How To Measure It

ShipBob

This involves keeping track of critical distribution metrics such as how many orders were shipped out on time because this is vital to determine how efficient their processes are, how satisfied customers will be, and whether they need to make improvements.

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