It is calculated by dividing the average inventory on hand (as value) by the average monthly demand (as value) and then multiplying it by thirty, when measuring on a monthly basis. For example, you can ship 100% of your products ordered by your customer but only deliver 50% within the time requested by your supplier. Be careful not to make your animation too complex with too many KPIs for your supply chain. Maintaining a consistently solid ROI is the bread and butter of ongoing eCommerce success. Selecting the right key performance indicators for supply chain analytics isn’t an exact science by any means. The perfect order rate measures the success of your ability to deliver orders incident-free, which will ultimately help you iron out issues such as inaccuracies, damages, delays, and inventory losses. In supermarkets, late orders are automatically refused upon receipt but having these 2 separate indicators allows you to identify if the problem comes from your stock or your delivery. Essential Supply Chain KPIs. Agility: The ability to respond to external influences, the ability to respond to marketplace changes to gain or maintain competitive advantage. Theoretically, to meet 100% of your customer needs all the time, and to face all possibilities (delays, strikes, quality problems, meteorite…), you would need to have infinite stock. Top 10 IT & Technology Buzzwords You Won’t Be Able To Avoid In 2021, Top 10 Analytics And Business Intelligence Trends For 2021, Utilize The Effectiveness Of Professional Executive Dashboards & Reports. And if your supply chain is inefficient, ineffective, or fragmented, it could seriously hinder your commercial prospects. When a Black Swan hits, having the right advanced analytics to react to supply chain disruptions is your company’s best defense. Calculation: Average stock in value on the last 52 weeks / Total sales x 365 days. Pulling data from KPI helps your reverse supply chain system run fast and effectively when embarking on the disposition process. Presented in a digestible pie chart-style format with a key showcasing the primary reasons for return, you will be able to assess your areas of weakness, analyze the quality of critical areas of your supply chain process, and make the kind of improvements that will enhance not only your reputation but your overall level of service significantly. Claro que eles precisam ser … Use KPI Library to search for Key Performance Indicators by process and industry, ask help or advice, and read articles written by independent experts. Le coefficient de rotation des stocks fait partie des indicateursà prendre en compte et dépend directement de l’intensité de l’offre, de la demande et de vos capacités à anticiper les variations sur le marché. This calculation is only made on the active references of the catalog. Comme nous l’avons dit précédemment, pour qu’un pilotage soit efficace les KPI doivent être identifiés mais également visibles. I recommend a one-week period to start. That said, here we’re going to look at the top 10 supply chain metrics that will help you, and your business, work toward a bright and prosperous future. Muitas pessoas ficam realmente confusas sobre KPIs ou Indicadores de Desempenho nas operações Logísticas e Cadeia de Suprimentos (Supply Chain). KPI Library is a community for performance management professionals. Which ones to use?… How many to use?Sadly, it’s not such an easy question to answer.Of course, they need to be SMART—Specific, Measurable, Achievable, Relevant, and Time-phased—but this may too rudimentary a set of rules to ensure KPIs are useful. The goal in this example is to avoid wasting money, retain customers, and define the stability of a business. Supply chain risk: This may be a tough KPI to develop due to the range of potential risks. And the answer is… at least one of the two. But store, shelf-level out-of-stocks (OOS), the most critical KPI in this supply chain, barely changed. This priceless supply chain metric will help you calculate the length of time required to transform your resources into bonafide cash flows. Check out what BI trends will be on everyone’s lips and keyboards in 2021. a full year) to avoid being impacted by your seasonal fluctuations. In this case: average stock = current stock + stock in transit (with or without, it is your choice). By tracking this KPI on a monthly basis, you’ll quickly gain an insight into which items in your inventory are poor performers and which are worth investing in more - gold dust in terms of business-based information. Il se calcule en divisant le coût d’achat des marchandises vendues par le stock moyen (au coût d’achat) de votre entrep… However, it will alert you to the future risks of breakage and overstocking. While Key Performance Indicators (KPIs) may be reviewed quarterly or monthly, the speed with which supply chain operations occur makes a daily view of more tactical and operational metrics a growing necessity. Ideally, you should average your stock day by day over the targeted timeframe. Quais usar, quantos usar? The days sales outstanding (DSO) KPI measures how swiftly you are able to collect or generate revenue from your customers. It is pivotal to calculate this KPI in value terms, as large quantities of products can have a significant impact on the total. Note that if you already have an ERP such as SAP, you can most likely extract the actual stock coverage per item. It's the supply chains that are competing." Also, if metrics and KPIs indicate a company’s logistics and supply chain operations are consistently meeting required performance levels, a company can decide to set a higher level of performance to aim at. Remember: Today, access to your metrics 24/7/365 is really important, what online data analysis tools can guarantee and ensure that your chances of long-term success increase. DOS is the most common KPI used by managers in measuring the efficiency in supply chain. The next KPI of this particular dashboard is the Carrying Cost of Inventory, followed by Inventory Accuracy and Out Of Stock Items. You can average per day afterward. Attention à ne pas complexifier votre animation avec trop d’indicateurs. Every company today runs on data – the key to using your data is choosing the right metrics for visibility into your supply chain. There's no denying it: optimal supply chain management conducted in a continually consistent, strategic, and data-driven manner will yield incredibly fruitful long-term results - the kind that will help your business evolve and scale over time. The table below simply summarizes the calculation on 10 items. If there were an award for “KPI with the longest name,” this one would surely win hands-down. How to Improve Supply Chain KPIs. Thanks to modern data visualization tools you can create stunning supply chain management dashboards with all your needed KPIs with a few clicks. Here is a summary of our top 10 supply chain KPIs we discussed in detail: If you want to track and visualize your supply chain metrics and KPIs with ease, you can try our KPI software for a free 14-day trial! Calculated by dividing the opening stock by the sales forecast for the following period, the IV is a KPI that will help you optimize your inventory levels, give you a greater chance of meeting consumer demand, and prevent you from wasting money on excess levels of stock. Also called stock life or stock coverage, it is the average number of days that the stock takes to run out. Working with three core ratios - the days of inventory (DOI), the days of payables (DOP), and the days of receivables (DOR) - the cash-to-cash time cycle KPI visualizes the period required between the moment a business pays cash to its suppliers and the moment it receives cash from its customers. If you have items with a short shelf life, do this calculation per month, or over the (more complex) shelf life of the product. This calculation must be done over the last 52 weeks to have a reliable KPI that takes into account seasonal fluctuations as the lower the number of days, the more efficient your stock is. By gaining this level of insight, you stand an excellent chance at decreasing returns, boosting profits, and improving cash flow as a result. 5 Ways to React to Supply Chain Disruptions in the Food and Beverage Industry. Managing Partners: Martin Blumenau, Jakob Rehermann | Trade Register: Berlin-Charlottenburg HRB 144962 B | Tax Identification Number: DE 28 552 2148, News, Insights and Advice for Getting your Data in Shape, BI Blog | Data Visualization & Analytics Blog | datapine. Examples include cycle-time metrics. This is the percentage of orders in quantity delivered on time. Supply Chain Effectiveness Description: The measure of how well an organisation can move product/services from conception to the customer. Yes, quite possibly the best KPI (Key Performance Indicator) for Supply Chain & Logistics. This KPI provides useful insights about your warehousing operations and helps you optimize your inventory levels, meet customer demands effectively, and reduce risks of excess and outdated inventory. Lead Time for customer and supplier deliveries. A supply chain business often uses the customer order cycle time metric to gauge its success with this aim. SCOR Agility metrics include Flexibility and … Service Rate Definition : Out of 100 orders received, the matter here is to understand how many orders are delivered on time. You can simultaneously manage a service rate on time for orders shipped and a service rate on time for orders delivered on time to manage both the quality of your stock management firstly and the quality of your logistics secondly (order preparation + transport times). The use of our Supply Chain and Logistics KPI Dashboard programme will help you maintain an overall measure and give you a view of which activities need your attention. Consulting services include Supply Chain Optimization & Integration, Business Process Management for B2B and A2A, master data management, tender management and troubleshooting. Der Lagerumschlag gibt an, wie häufig der gesamte Lagerbestand in einem bestimmten Zeitraum verkauft wird. Also, the more stock you have, the less « efficient » it will be. Pilotage Supply Chain avec KPI. The attributes of an effective supply chain will offer transparency, flexibility and alignment to tailor the system to the strategic benefit of the organisation. It is recommended to always take a long period of time (e.g. While an argument exists that only customer-facing platforms should have top priority, it’s equally essential to track the business-to-business portal uptime. 5 other KPIs for your supply chain. KPI Library | Supply chain. This calculation is not perfect because to be correct, it would have to take into account the seasonal fluctuations and arrival dates of each order. Celui-ci permet de piloter les KPI aussi bien individuellement que de manière collective. But this curve is unfortunately not linear (not straight). This particular insight is one of the most critical supply chain KPIs for businesses operating in a multitude of sectors. Our graph below summarizes this principle. KPI Supply Chain Solutions is a consulting and training provider that has established its niche in the Supply Chain Industry. In %: out of 100 products, how many are available to the customer (in-store, warehouse…). At no level in a function, or cross-functionally though, should anyone need to monitor more than a few KPIs. For more data-driven wisdom, check out these great dashboard designs that you can get inspiration from. By tracking these critical supply chain performance metrics in one initiative space, you will be able to implement initiatives that not only hold maximum value but will also ensure the smooth running and perpetual improvements of your supply chain processes, ensuring that every single cog in the wheel is turning to maximum efficiency - which of course, is priceless. However, despite the clear-cut value of developing an efficient supply chain, 40% of companies aren't looking at supply chain performance metrics or automation to improve their processes. Essentially, a low, or healthy, DSO number means that it takes a business fewer days to collect its accounts receivable. Discontinued products and new products not yet in stock are excluded. A pivotal supply chain KPI, the inventory velocity, or IV, provides a visual snapshot of the percentage of inventory that's projected for consumption within the next period or quarter. On-time delivery (DOT = Delivery on time). Headquartered in Mexico, Sigma Alimentos is a leading food company with a direct store deliveries business model. The supply chain is essentially the backbone of any business: a living ecosystem that ensures the smooth, efficient, and consistent delivery of a product or service from a supplier to customer. I strongly recommend working on a value (cost) basis and not on a quantity basis because this stock represents your fixed assets. I, therefore, recommend that you at least average your stock per week or per month. In line with our “Vision” and “Mission” we offer a complete Supply Chain Solutions package to our clients to reduce their costs and improve Skills levels. Stock life = 1,000,000 / 5,000 = 200 days. A final parcel KPI supply chain strategy should also monitor the total uptime of online tracking systems. KPI Cubed is a niche consulting company specialising in Supply Chain and Talent Management functions related to FMCG, Retail and Third Party Logistics Services. C’est à ce moment-là que le management visuel fait son entrée. By calculating your on-time shipping rate and comparing it to other competitors within your industry, you will be able to create a clear management reporting practice, see where you stand, and take the appropriate action to improve it over time - this will result in a boost in brand authority as well as an increased bottom line - so it’s important. People love to use buzzwords in the tech industry, so check out our list of the top 10 technology buzzwords that you won’t be able to avoid in 2021. - Wael Safwat, SCMAO. Diese Kennzahl ist die Summe der längstmöglichen Vorlaufzeiten für jede Phase des Supply-Chain-Zyklus. Quality performance rating: This KPI can show an overall supply base quality rating, but specific quality KPIs at the supplier level are critical to measure specific performance. Managing all the moving parts in your supply chain can be a logistical nightmare unless you have access to the right KPIs and metrics. By drilling down into inventory management logistics, this particular KPI dashboard (which can also be used as an interactive dashboard) will help you deal with unexpected supply chain situations, enhance your stock buying practices, reduce operational as well as financial inefficiencies, significantly improve the accuracy of your and a great deal more. Want to visualize & track supply chain metrics with ease? Here is how freight bill accuracy is calculated: (error-free freight bills / total freight bills) * 100. You can calculate this supply chain KPI by subtracting the order delivery date from the day the customer created the purchase order. More ideas on using Supply Chain KPI. .. les organisations supply chain regroupent un nombre d’acteurs important … In supply chain metrics, the GMROI offers a clear representation of the gross profit gained for every AED (or $, £, €, ₺) of the average investment made in your inventory: a calculation achieved by dividing the gross profit by the average inventory investment. Indeed, your financial asset is in value, not in quantity. We can see the curve flattening out when you win your last percentages. Keep this service rate at least once a week/month to measure your performance and build a record. If you have no record, simply take the average between the beginning and end stock of the chosen period. Very few companies have this stock record available per day. What is a Supply Chain Dashboard? The speed at which a supply chain provides products to the customer. The return reason supply chain metric offers an astute insight into the various motives causing your customers and clients to return their orders – a piece of information that is priceless to the ongoing success of an eCommerce business. Example: I have 100 products in my catalog, only 70 are available for my customers, so I have the availability of 70/100 = 70%. Purchase full version of Supply Chain Measures + bonus. The unrivaled power and potential of executive dashboards, metrics and reporting explained. If you improve your purchase prices, you improve your stock rotation in value (not in quantity). Others Metrics for your supply chain : … This is to quickly see if your next order arrives in time not to be out of stock or too early not to be over-stocked. Example: Let’s assume that your average stock in 2016 is $1,000,000 and your average daily sale is $5,000 per day. You can explore our supply chain management dashboard in greater detail here. By taking a year, you will know on average how many times the stock rotates over that year. To find this balance it is therefore essential to set up at least these 2 KPIs. Identify in-house or third-party providers that will help collect waste and dispose of assets in a sustainable and cost-effective way. However, despite its lengthy moniker, total supply chain management cost as percentage of sales is one of the most common financial KPIs used by supply chain organisations. Infelizmente não é uma pergunta fácil. The higher the perfect order rate, the better, because this KPI has a direct impact on your customer retention and loyalty levels. Retrieve the complete list of orders received over the desired period. Die sogenannte Supply-Chain-Cycle Time ist eine umfassende Kennzahl dafür, wie lange die Abwicklung eines Kundenauftrags dauern würde, wenn alle Bestände zum Zeitpunkt der Auftragserteilung bei null wären. 6. By Sandra Durcevic in KPIs, Sep 27th 2018, "It's not the organizations that are competing. In essence, it is the difference in time between when a business pays its suppliers to purchase inventory and when it receives money from its customers in return for goods sold. The availability rate is mainly used for retail (stores) and distribution to know its availability rate in-store departments.
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