What is an index in supply chain?
The Supply Chain Index is a measurement of supply chain improvement and is a useful methodology for comparing the progress of companies within a peer group.
What is supply chain performance metrics?
What Are Supply Chain Metrics? Supply chain metrics are defined by establishing specific parameters which are used in quantifying and defining supply chain performance. The metrics can be utilized in the inventory accuracy and turnover metrics, to the inventory-to-sales ratio.
How supply chain performance is measured?
Qualitative measures − For example, customer satisfaction and product quality. Quantitative measures − For example, order-to-delivery lead time, supply chain response time, flexibility, resource utilization, delivery performance.
How is supply index calculated?
To calculate the Price Index, take the price of the Market Basket of the year of interest and divide by the price of the Market Basket of the base year, then multiply by 100.
How do you measure productivity in supply chain?
DOS is the most common KPI used by managers in measuring the efficiency in supply chain. 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.
What are KPIs in logistics?
A logistics KPI or metric is a performance measurement that is used by logistics managers to track, visualize and optimize all relevant logistic processes in an efficient way. Among others, these measurements refer to transportation, warehouse and supply chain aspects.
What is supply chain performance?
Supply Chain Performance refers to the extended supply chain’s activities in meeting end-customer requirements, including product availability, on-time delivery, and all the necessary inventory and capacity in the supply chain to deliver that performance in a responsive manner.
What are the KPIs that measure supply chain performance?
What Are Supply Chain KPIs? To define your supply chain KPIs, you must first set specific performance parameters required for tracking operations. These parameters reveal helpful insights like order accuracy, inventory turnover, inventory-to-sales ratio, and inventory velocity.
How is the supply chain index of performance improvement?
The Supply Chain Index of performance improvement is built on the framework of the Effective Frontier (shown in Figure 1). In this model, growth and profitability must be maximized, cycle time should be reduced, and complexity needs to be managed. It is a complex system.
How to determine your supply chain KPI suite?
In determining your supply chain KPI suite then, the secret is to identify performance elements critical to those with the power to influence them, and develop appropriate KPIs for that audience. At no level in a function, or cross-functionally though, should anyone need to monitor more than a few KPIs.
What are the key indicators of Supply Chain Management?
Supply Chain Costs. Costs are one of the supply chain key performance indicators that shows relevant costs that are associated with supply chain management. These costs can include planning, managing teams, sourcing, delivering, etc., and it will show how efficient parts of the company are.
Which is a factor in Supply Chain Excellence?
Sometimes the choices are made consciously, but others are unconscious and seem to just happen. Conscious choice in alignment with a business strategy is a strong factor in determining supply chain excellence. While supply chain excellence is not the sole factor in a company’s success, it is hard for a company to succeed without it.