HIGH SPEED, LOW DRAG SUPPLY CHAIN SOLUTIONS - EVERY STEP OF THE WAY
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Supply Chain Management Solutions, LLC
Planning & Procurement Cost Reduction
Spend, savings, on-time delivery, EOQ, quality, internal forecast/demand, inventory turns, customer satisfaction, etc. These are likely some of the Key Performance Indicators your team is already managing. If not, we’ll add them; if so, we’ll tighten them. Does your organization have the ability to indisputably identify internal and/or external performance issues and take corrective action? This ability directly affects your capacity to meet your quality customer deliverables, and achieve and increase customer satisfaction. Has your organization “moved up the supply chain”? Are you considering reducing suppliers to generate economies of scale? Do your suppliers participate in joint cost savings programs with you? Do your customers? We will show you how to do this effectively and hold your hand through the process.
Inventory KPIs are key indicators of the health of your supply chain. They reflect the agility and profitability of your supply chain. Most every make-to-stock organization suffers from excess inventory that ties up capital and hurts profitability. Some companies struggle with large quantities of obsolete stock, which is even worse for their balance sheet and is notoriously difficult to liquidate with any positive return on investment.
High Speed, Low Drag = Low Cost
• Do your suppliers make unscheduled dock deliveries?
• Does your warehouse staff sign off on the Way Bill before inspecting, resulting in short ships and damage with no
• Does your staff have time to systematically enter deliveries & location into system ? If not, does this breakdown
drive Work Order shortages?
• Touches: due to unscheduled deliveries, does your receiving team stack product in the aisles, only to have to move
the pallets multiple times misplacing inventory?
• Once misplaced, does systematically missing inventory drive production shortages and emergency reorders,
creating further excess, late builds and cancelled orders?
• Does this “lost” inventory have a shelf life, increasing potential scrap costs?
ARE YOU READY TO MAKE SUPPLY CHAIN YOUR COMPETITIVE ADVANTAGE?
CALL US TODAY FOR A FREE CONSULTATION 801.636.5674. OR, EMAIL US AT INFO@SCMSPRO.COM.
Where Are You With These 4 Key Performance Indicators?
TARGET SERVICE LEVELS – Target service levels measure the performance of your inventory system. Certain order fill rate goals are defined and the service level gives the percentage to which those goals should be achieved. In the case of inventory management key performance indicators, you will want to track the percentage of customers that do not experience a stock out. Knowing what service levels are needed per stocked item across your supply chain will ensure you can meet customer demand and keep your customers happy.
EXCESS INVENTORY / CASH POOR – Always have a pulse on how much capital you have tied up in stock by running ABC analyses. You should have a healthy balance across your A classified products—your high volume, fast moving products. With B and C classed products, companies can experiment with lower volumes to reduce overall capital investment. If you can reduce capital by reducing C or B level products while maintaining high service levels, you free up capital for other high priority business needs.
BACK ORDER RECOVERY – A consistently high level of back orders can indicate a strong market demand for a company’s product, but there are also risks with losing customers or having canceled sales orders due to long waiting periods for delivery.
SUPPLIER PERFORMANCE – A failure to manage and monitor supplier performance can lead to major supply chain disruptions, delivery problems, poor quality, and other issues that damage a company’s credibility, as well as their bottom line. You must have a way to track and measure each of your suppliers as it relates to their performance metrics.
Supply Chain Problems: Key Performance Indicators