Supply Chain Metric .com
Once you have an understanding of basic Supply
Chain Metrics, focus on a limited number of measurements that add value. Choose those metrics that will
track your companies true performance. You don't want to get into the trap of
"analysis paralysis". Over-analysis leads to confusion and sometimes conflicting
goals. I would recommend picking 5 - 7 key measures per functional area. These
measures are sometimes referred to as KPI's (Key Performance Indicators).
Benchmarking: One way to set your goals is
Benchmarking. There are various benchmarking services, that for a fee, will
compare your company to other "like" companies. You submit your answers to a set
of questions. Those answers are averaged in with other companies submissions.
Averages are calculated and World Class levels are set.
SMART goals :
Measurable: Here is where you use your metric. Make sure you have a reliable system in place that will accurately measure your performance
Attainable: Will the Supply Chain projects you have scheduled for the year produce results that will achieve your goal? The person setting the goal and the person responsible for achieving the goal should agree with the target. If results are un-attainable or unrealistic, they will have a de-motivating effect on your employees.
Realistic: Don't plan to do things if you are unlikely to follow through. Better to plan only a few things and be successful rather than many things and be unsuccessful. Your Supply Chain goals should be challenging, but realistic in relation to the improvement projects you have in place.
Time frame: Identify when your targeting to
hit your goal.
Customer Service Policy:
Supply Chain optimization is difficult to achieve. But with the right metrics in place and proper goals set, you now know where to focus your improvement projects. You have just gotten closer to Supply Chain optimization.
Our goal is to guide companies that are looking to
optimize their Supply Chain. Originally, we intended on answering questions about Inventory
Control, Sourcing, Manufacturing, Distribution and Supply Chain Metrics. However, we currently do not have the resources to answer individual questions.
For information on Inventory
Turns, Fill Rate Measurement, Backorder Reporting or any other Supply Chain
Metric, click on the links to the left. The text that appears on this
website is the opinion of the webmaster. Metrics may or may not be uniform
across all industries. All data listed here may be used as a general guide, but
it's accuracy is not guaranteed. Please consult a qualified Supply Chain
professional for more details on Supply Chain Measurements.
Other Supply Chain Websites
VendorManagedInventory.com - information on
Vendor Managed Inventory