Metric Dashboards for Operations and Supply Chain Excellence. Customers rely on Tradecloud to make their global supply chain more predictable, automate operational processes and focus on exceptions. The news story above made me think of several examples where a supply chain would use similar concepts to develop early warning metrics. But as anyone working in the manufacturing industry knows, there is a lot of work that goes into ensuring everything goes smoothly. Key enablers: policy deployment, accountability sessions, employee training and involvement, and improvement tool selection and application -- 6. If you do not select a country we will assume you are from the United States.
Fill rate can be important to customer satisfaction and has implications for transportation efficiency. . How to Establish Early Warning Supply Chain Metrics was first posted on October 11, 2017 at 10:00 am. In recent webinars and presentations, I have been talking about Early Warning Systems within the context of supply chains. For example, if the demand management group is held accountable for the requested customer service date, and manufacturing and supply are also held accountable, then they are more likely to work together to achieve the metric than if one or the other were held accountable individually. Queue times, rejection rates, and transport metrics such as crossdock rates are key.
A higher inventory turnover indicates an efficient supply chain. The organizational measurement challenge: what's the score? Operations and supply chain leaders will benefit from this book by developing a clear understanding of why and how metric scorecards and dashboards can be used as a powerful data driven improvement tool. Supply Chain Cycle TimeThe time it would take to fill a customer order if inventory levels were zero. Goal: Reduce average defects by 200 ppm on all material receipts within one year. Operations and supply chain leaders will benefit from this book by developing a clear understanding of why and how metric scorecards and dashboards can be used as a powerful data driven improvement tool.
Generally, product companies that offer high value-add fall in this category. Your Supply Chain Type So what orientation does your company have? Freight bill accuracyThe percentage of freight bills that are error-free. Once each metric is identified, then it must be defined in terms of the data that will be used to track the measure. The concept of diminishing returns applies here, when in the early stages, organizations were able to find 'low-hanging fruit' and to quickly make significant improvements. Short cycles make for a more efficient and agile supply chain. Achieving, sustaining, and celebrating success -- References -- Index.
To help us insure we adhere to various privacy regulations, please select your country of residence. Before that though, your supply chain measurement program must be based on some idea about your end goals. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more. Once defined, that objective will be used to drive performance objectives for specific individuals in the facility, and ensure that everyone understands the objective. If you would like to unsubscribe or have any questions, you can click on the unsubscribe links in our messages or contact us using the information below. Step 1 — Translate Organizational Objectives Into Supply Chain Metrics Before beginning to establish supply chain metrics, managers must first take the time to ensure that they fully understand key organizational objectives. A high rate indicates an efficient supply chain.
The four key methods here will help you drive more success as you bring the metrics to life on your warehouse floor: 1. Inventory Days of Supply The number of days it would take to run out of supply if it was not replenished. In our experience across hundreds of implementations, we find that while every company has its own unique dynamics that must be measured, most businesses fall into one of three operational types — and these types can be grouped by a focus on customers, products, or operational efficiency. It helps the managers to understand how well the inventory on hand matched the demand. Supply Chain Metrics may include measurements for procurement, production, transportation, inventory, warehousing, material handling, packaging and customer service. With its focus on shipment, this dashboard emphasizes service excellence. Unless supply chain management executives can effectively translate broad-level objectives into specific functional or plant-level management goals, these strategies will never be realized.
If you do provide consent, you may change your mind and unsubscribe at any time. Their supply chains must be flexible and responsive to customer and market needs. This level of detail requires translating companywide management goals into specific supply level or plant-level goals. Product Excellence Companies with a focus on operational excellence view all aspects of the supply chain holistically. The result will be a scorecard by department or people with specific key performance indicators. D-Line Products was a high-volume manufacturer of component parts. When faced with these challenges, business units must then work together to define their functional strategies, which are a set of short-term and long-term plans that will support the enterprise strategy.
Step 5: Measure Current Performance and Benchmark with Best-in-Class Competitors The final step in the supply chain metrics development process is to set targets for improvement. In selecting a benchmark, it is important to select competitors who are similar to your company in size and range, and to ensure that the metrics being compared are similar to the metrics in your system. The term scoreboards and dashboards are quite common, and many organizations have them. We have collected the most important supply chain metrics for you. Book Description Over the last decade Lean and Six Sigma methods and tools have helped organizations improve to historic productivity levels with the data driven, systematic elimination of waste and improvement of flow. Many people are talking about Key Performance Indicators, Metrics, Analytics, and other indicators of performance. Developing organizational measures: the plan -- 5.