Managing a supply chain can often feel like a high-wire balancing act. Accurate metrics are the safety net that ensures you don’t fall. This guide unravels the complexities of Supply Chain KPIs, turning data into your most trusted ally for making informed decisions.
Discover clear, actionable insights and keep reading to master your supply chain’s performance.
Key Takeaways
Supply chain KPIs help companies navigate logistics, optimise operations and meet strategic goals by tracking critical aspects such as inventory turnover and freight bill accuracy.
Sharing KPI data across departments promotes unity in the supply chain, leading to quicker decision making and a focused approach for using data effectively.
Responsiveness and adaptability in supply chains are crucial; adopting digital tools that provide real-time insights can enhance service levels significantly, potentially improving customer service by up to 30%.
Top-level management metrics like Cash-to-Cash Time Cycle, Freight Bill Accuracy, Perfect Order Rate, Days Sales Outstanding (DSO), Inventory Turnover, and GMROI are key indicators of financial health and operational efficiency.
Regular monitoring of important inventory metrics such as Warehousing Costs and Inventory Days Of Supply enables businesses to maintain optimal stock levels while avoiding unnecessary costs.
Understanding Supply Chain KPIs
Supply chain KPIs serve as a compass in the complex world of logistics, guiding companies how to calculate value index supply chain, optimise operations and achieve strategic goals. They measure every aspect of supply chain management – from inventory turnover rates that signal how swiftly products are sold, to freight bill accuracy which ensures shipping costs are kept under control.
Clear understanding of these indicators is crucial for identifying bottlenecks, minimising stockouts and managing overheads effectively.
These key performance indicators also shed light on customer satisfaction through metrics such as the perfect order rate or the on-time delivery percentage. Leaders who grasp the value of these insights can make informed decisions that streamline processes and enhance profitability.
Directors need this knowledge to pivot quickly in response to market changes, always ensuring that their strategy maintains alignment with company objectives and customer needs. With this foundation set, one can delve into why supply chain metrics and KPIs hold importance for business cohesion and data-focused insights.
Importance of Supply Chain Metrics & KPIs
Supply chain metrics and KPIs are critical navigational tools for managing modern supply chains, offering the insights needed to steer towards efficiency and competitiveness. They serve as vital signposts that direct operational focus, enabling businesses to respond swiftly to market dynamics and enhance performance across all facets of the supply chain.
Communication & cohesion
Effective communication and cohesion within the supply chain are critical for achieving operational harmony and success. Sharing precise and targeted KPI data between departments ensures that everyone from warehouse staff to top-level executives is on the same page, working towards common goals.
Utilise key performance indicators to establish a unified vision across your supply chains, strengthening ties between suppliers, logistics teams, and customers alike.
Building this interconnectedness facilitates quicker decision-making, fosters trust among stakeholders, and leads directly into developing a more focused approach in using data for sharp insights – setting the stage for our next section: Focused data & supply chain insights.
Focused data & supply chain insights
Harnessing focussed data and supply chain insights allows directors to pinpoint efficiency gaps, streamline operations, and boost productivity. With a firm grip on supply chain management key performance indicators (KPIs), strategic decision-making becomes rooted in solid evidence rather than guesswork.
This approach leverages modern online visualisation tools that integrate essential KPIs into comprehensive dashboards for real-time analysis. Empowered with these tailored analytics, leaders can propel their supply chains towards operational excellence.
The clarity provided by these metrics also offers an edge over the competition; recent studies highlight that companies excelling in this area often see revenue growth outpacing sector averages.
Directors benefit from a holistic overview of the entire supply chain lifecycle, affording them agility in responding to market shifts or logistical challenges. The next topic of discussion moves us towards understanding responsivity and adaptability within the realm of supply chain management.
Responsivity & adaptability
Supply supply chain responsiveness, adaptability and responsivity are not just buzzwords; they’re essential for the survival and success of any business. Having the capability to respond swiftly to market changes, customer demands, or unforeseen disruptions means you can maintain service levels without missing a beat.
It requires flexible strategies, agile decision-making processes, and technology that delivers real-time insights.
Embracing adaptive supply chain processes and systems does more than just prevent bottlenecks; it creates opportunities for growth and competitive advantage. Digital tools play a vital role in achieving this agility by integrating ecosystem partners and providing information at your fingertips, enabling quick adjustments across your network.
After all, resilient digital supply chains have shown they can significantly improve customer service – by as much as 30%. In the fast-paced world of supply chains, responsiveness isn’t optional – it’s critical for sustainable performance metrics in supply chain management.
Top-level Supply Chain Management Metrics and KPIs
Understanding the top-level metrics and KPIs in supply chain management is a strategic compass guiding businesses through the complexities of operational efficiency; dive deeper to harness these critical insights for your company’s benefit.
Cash-to-Cash Time Cycle
Efficient and effective supply chain management hinges on mastering the cash-to-cash time cycle. This crucial metric gauges the time span it takes to convert resource outlays into actual cash flows, offering a snapshot of how swiftly a company turns investments in inventory and other resources into returns from customers.
A shorter cycle signals that your business is quick in recouping investment costs and has greater liquidity, giving you an edge over competitors who may be slower in transforming expenditures into revenue.
Optimising your company’s cash-to-cash time can significantly tighten financial efficiency, freeing up capital for reinvestment or strategic initiatives. Focus on this indicator to streamline operations and enhance cash flow management; doing so will put you steps ahead in achieving operational excellence.
Moving on from managing metrics related to money, we now turn our attention toward ensuring freight bill accuracy – a factor that can greatly affect your bottom line if overlooked.
Freight Bill Accuracy
Freight bill accuracy stands as a cornerstone in the architecture of supply chain management, underpinning both profitability and customer satisfaction. Directors should focus keenly on this KPI, as it encapsulates the veracity of shipping charges and services rendered against contracted rates and terms.
Ensuring every freight bill is scrutinised for discrepancies not only safeguards against financial leakage but also reinforces trust with carriers and customers.
Leveraging modern online data visualisation tools can transform this tedious task into an agile process. These platforms illuminate supply chain analytics, empowering decision-makers with real-time access to actionable insights.
Accurate freight bills mean businesses can identify cost-saving opportunities swiftly, optimising their value proposition while maintaining robust service levels to meet market demands.
Perfect Order Rate
Measuring the Perfect Order Rate is vital for evaluating your company’s efficacy in delivering orders without errors or incidents. This metric directly influences customer retention by reflecting how often products reach customers in good condition, on time, and with correct and accurate documentation throughout.
Businesses strive for a high Perfect Order Rate to ensure they are meeting customer expectations, which is essential for building loyalty and trust.
A focus on improving this key performance indicator can lead to smoother shipping operations and heightened satisfaction among your clientele. It prompts an analysis of various components in the delivery process that could be enhanced.
Companies track this KPI closely as it provides insight into areas such as order accuracy, shipment times, and handling procedures – all crucial aspects that affect overall supply chain efficiency and effectiveness.
Days Sales Outstanding (DSO)
Days Sales Outstanding (DSO) stands as a crucial metric for supply chain management, sharpening the focus on the effectiveness of your company’s receivables collection. It pinpoints how quickly customer payments are being converted into usable funds, which is vital for maintaining cash flow and supporting day-to-day operations.
A lower DSO value signifies that your business is efficient at collecting revenue; this efficiency can boost overall financial health and provide more capital for investment opportunities.
Understanding and managing DSO effectively requires attention to detail in sales and distribution processes, with an eye towards optimising them to support faster collections. This drives profitability by ensuring available cash to meet operational needs without unnecessary borrowing.
Regularly monitoring this KPI helps businesses stay ahead by adjusting credit policies and collection strategies to maintain a sustainable performance level reflective of industry benchmarks – a key step in leading any organisation toward success in today’s competitive markets.
Inventory Turnover
From carefully tracking Days Sales Outstanding, we turn to scrutinising Inventory Turnover, another critical metric that reflects on your supply chain’s health and profitability. High inventory turnover signals a robust demand for products, an essential indicator of market relevance and customer satisfaction.
This KPI helps directors gauge how effectively their team is managing stock levels against sales performance.
Keeping a watchful eye on this measure uncovers potential overstocking issues or conversely highlights fast-moving items that may need restocking more frequently to meet customer demand.
By striking the right balance in inventory levels, companies can maintain liquidity and avoid unnecessary storage costs, ultimately leading to sustained cash flow and improved profit margins.
Proper analysis and management of Inventory Turnover pave the way for operational excellence and financial stability within the supply chain ecosystem.
Gross Margin Return On Investment (GMROI)
Moving from the analysis of how quickly inventory moves through your system with Inventory Turnover, we delve into understanding its profitability with Gross Margin Return on Investment (GMROI).
This metric shines a spotlight on the financial effectiveness of your stock management strategies. By measuring GMROI, you assess not just whether you’re turning over inventory efficiently, but also if that turnover is profitable.
Calculating GMROI provides insights into which products or categories are contributing most to your bottom line and warrants deeper investment. Essentially, it informs directors exactly how much gross margin is earned for every pound spent on inventory.
Employing this KPI empowers supply chain decision-makers to pinpoint areas where cost reductions could amplify profit margins or identify less obvious avenues for driving efficiency in the supply chain performance metrics.
Important Inventory Metrics and KPIs
Navigating the complex world of inventory management requires a keen eye on specific metrics and KPIs that reflect stock efficiency, cost implications, and overall health of supply chain operations.
Mastery of these figures can transform inventory control from a guessing game into a strategic asset in the relentless pursuit of business optimisation.
Warehousing Costs
Warehousing costs significantly impact the bottom line and demand close scrutiny. These expenses encompass labour, rent, utilities, equipment cost, and material handling systems involved in storing products.
Effective management of these overheads is crucial to ensure a healthy profit margin for your company.
Directors must routinely assess warehousing expenditures to identify areas where reducing costs can lead to increased profitability. Calculating these costs involves summing up all annual overheads and dividing by the average number of units housed within the facility over that period.
A keen eye on this KPI offers insights into potential supply chain inefficiencies while highlighting opportunities for enhanced cost-effectiveness across operations.
Supply Chain Costs
Keeping track of supply chain costs involves monitoring a range of expenses, from the purchase of raw materials to the actual delivery date of finished products. It includes operational costs like manufacturing and warehousing, as well as transportation, handling fees, and other logistics services.
With every step in the supply chain potentially adding to the overall cost base, it’s essential for directors to maintain a clear view on where financial resources are being utilised.
Effective management hinges on dissecting these costs into understandable categories such as labour, equipment maintenance and utility bills. This categorisation enables leaders to pinpoint areas prone to overspending or inefficiencies.
Utilising a supply chain metrics dashboard can simplify this process by showcasing data like total net sales against total supply chain expenditure and average cash-to-cash cycle times.
Through rigorous analysis supported by concrete data points, decision-makers can drive strategic improvements that may lead not just to cost reduction but also enhanced performance across the entire supply network.
Supply Chain Costs vs. Sales
Understanding the balance between supply chain costs and sales is vital for any business aiming to maximise profits. A healthy ratio indicates that a company manages its supply chain efficiently, ensuring that costs do not eat into the potential revenue generated by sales.
It’s essential to track this metric to pinpoint where cost savings can be made without compromising on service quality or customer satisfaction.
Tracking every penny flowing through your supply chain against each sale reveals much about operational health. Directors should consider this measure as an actionable insight into their company’s supply chain key performance here, helping them make informed decisions.
Striking the right balance here could mean the difference between expanding profit margins and losing ground in today’s competitive market landscape.
Inventory To Sales Ratio
Shifting from examining total supply chain costs in relation to sales, we turn our focus to the inventory-to-sales ratio. This key performance indicator keeps a close eye on your stock levels compared to how well and how often products are selling.
It’s an essential barometer for financial health, highlighting whether you’re holding too much stock or if you’re at risk of running out.
The ideal inventory-to-sales ratio varies by industry but finding that sweet spot can mean the difference between carrying dead stock and cashing in on high-turnover items. Leaders must scrutinise this metric to maintain balance, ensuring inventories are lean enough to reduce holding costs yet sufficient to meet customer demand without delay.
Monitoring this ratio helps businesses pivot swiftly, aligning their stocking strategies with market dynamics and consumer behaviour for maximum profitability.
Inventory Days Of Supply
Calculating inventory days of supply helps companies foresee and avoid stock shortages that can cause sales loss. This important metric shows how long current inventory will last based on average product usage.
By mastering this, directors can enhance strategic planning and ensure continuity in operations. It highlights potential inefficiencies in inventory management, prompting timely adjustments.
With an optimised approach towards managing inventory days of supply, directors bolster their capability to align stock levels with fluctuating customer demands. This balancing act is not only critical for maintaining service quality but also serves as a pivotal factor in driving profitability and reducing excess costs associated with overstocking.
An adept application of this metric facilitates better financial health by turning stored products into revenue more quickly and reliably.
Key Supply Chain Shipping Metrics and KPIs
Mastering key shipping metrics and KPIs within the supply chain is paramount for maintaining a competitive edge, as they shine a light on efficiency, customer satisfaction, and overall performance.
These indicators serve as crucial tools in steering strategic decisions that refine delivery processes and enhance the end-to-end journey of products from warehouse to customer.
On-Time Shipping
On-time shipping stands as a cornerstone in ensuring customer satisfaction and maintaining a competitive edge. It measures the reliability of your delivery process, reflecting how often orders arrive by the promised time.
Achieving high on-time shipping rates can significantly increase revenue growth, with top-performing companies often surpassing their sector’s average. Directors need to monitor this KPI closely because it directly impacts customer loyalty and trust.
Implementing strategies that enhance on-time delivery involves optimising logistics operations and addressing potential bottlenecks in your supply chain. By prioritising this metric, you lay the groundwork for smoother operations and stronger supplier-customer relationships.
Let us now shift our attention to ‘Delivery Time’ which is integral to evaluating overall efficiency within the shipping process.
Delivery Time
Delivery time stands as a pivotal metric in gauging the efficiency and reliability of your supply chain. It directly influences customer satisfaction, shaping their decision to continue doing business with your company.
Swift and accurate delivery goes beyond logistics; it’s a statement about your brand’s commitment to its service promises.
Meeting benchmarks like Walmart’s stringent on-time delivery requirements – 87% for full truckloads and 70% for less than truckload deliveries – requires precise coordination across all aspects of supply chain management.
Directors must oversee that every link in this complex supply chain process operates seamlessly to ensure goods reach their destination promptly, affirming the company’s reputation as reliable and responsive in today’s fast-paced market.
Return Reason
Understanding why products are returned is just as crucial as delivering them efficiently. The Return Reason metric shines a light on the underlying factors behind customer dissatisfaction or product issues, driving supply chain improvements.
By examining this KPI, companies gain actionable insights into common trends and pinpoint areas requiring attention. This could involve enhancing product quality, refining shipping practices, or improving communication with customers.
Keeping track of the top reasons for returns allows businesses to target specific challenges within their supply chain operations. It presents an opportunity not just to reduce future return rates but also to elevate the overall customer experience.
Implementing changes based on these findings can lead directly to stronger brand loyalty and reduced costs associated with handling returns – a win-win situation for any company looking to thrive in today’s competitive market.
Fill Rate
Moving from exploring return reasons, we now turn our attention to the fill rate – a critical measure of inventory velocity that directly impacts customer satisfaction. A stellar fill rate ensures that customers receive their full order on time, reflecting the effectiveness of your supply chain operations.
Consistently achieving a high fill rate can be a challenging task, yet it’s paramount for maintaining strong customer relations and staying ahead in today’s competitive market.
To keep your supply chain performing at its peak, closely monitoring and optimising your fill rate is essential. Factors leading to poor fill rates such as stock-outs or delayed deliveries not only frustrate customers but also harm your company’s reputation and bottom line.
On the flip side, an optimised fill rate leads to smoother warehouse operations, happier customers, and ultimately increases revenue – providing tangible proof of an efficient supply chain management system.
Directors should note: prioritising improvements in this area delivers measurable benefits across the board.
Delivered on Time and In Full (OTIF)
While a high fill rate indicates successful order completion, Delivered on Time and In Full (OTIF) reflects the punctuality and completeness of those deliveries. This crucial supply chain KPI measures not just quantity, but also the timeliness of shipments reaching their destinations.
Aiming for an exemplary OTIF score is non-negotiable in maintaining customer satisfaction and keeping your supply chain’s reputation solid. It tells you whether customer orders are arriving as promised – complete, without damages or shortages, and at the exact time they were expected.
Improving your company’s OTIF can lead to stronger partnerships with retailers who value dependable suppliers. As a director, closely monitoring this metric will give you invaluable insight into how well your logistics operations are meeting demands.
Striving for perfection in OTIF performance ensures that every link in your supply chain works together seamlessly to deliver excellence straight to the doorstep of your client’s business.
Other Essential Supply Chain Metrics and KPIs
Beyond the primary metrics, a plethora of additional KPIs are pivotal in honing supply chain performance. These indicators delve into nuanced aspects of operations, from freight efficiency to packaging optimisation, shaping strategic decisions and bolstering operational excellence.
Freight Cost per Unit
Calculating Freight Cost per Unit offers a clear view of the money spent on shipping relative to the number of units transported. This metric provides an invaluable spotlight on financial expenditure for freight activities, allowing companies to determine whether they are overspending in this area and where efficiencies can be implemented.
Precision here is crucial; identifying even minor cost-saving opportunities can lead to significant improvements in overall profit margins, making it a pivotal KPI for supply chain management.
With keen attention paid to Freight Cost per Unit, directors have at their fingertips a powerful tool for refining budget strategies and enhancing operational efficiency. Scrutinising this KPI helps ensure that every penny devoted to freight contributes positively to the company’s bottom line while maintaining service quality standards.
It aligns closely with other key supply chain metrics like the inventory turnover rate and order fulfilment rates, forming a comprehensive picture of logistical performance.
Use of Packing Material
Selecting the right packing materials can dramatically streamline your supply chain operations. Efficient use of resources in this area optimises space and reduces waste, directly influencing your cash-to-cash cycle time by preventing excess inventory build-up.
Furthermore, thoughtfully chosen packaging ensures products are secure during transit, leading to fewer returns and complaints which contributes to a positive impact on your days sales outstanding (DSO).
Strategic packing material management goes beyond mere product protection; it’s about enhancing overall customer satisfaction and minimising environmental impact. By focusing on sustainability and cost-effectiveness, you effectively manage carrying costs of inventory while boosting consumer trust.
This delicate balance between protection and efficiency must not be overlooked as it plays a crucial role in both operational performance metrics for supply chain management and long-term business success within competitive markets.
Supply Chain Cycle Time
Moving from the efficiency of packing material use, we delve into supply chain cycle time, a crucial measure of end-to-end process speed. This metric encompasses the entire journey from procuring raw materials to delivering finished products to customers.
A shorter cycle time reflects a leaner, more responsive, supply chain operation – one that can pivot quickly to market changes and customer demands.
Directors often scrutinise this KPI as it directly correlates with how well resources are utilised and dictates the ability to replenish inventory swiftly. Reducing supply chain cycle time not only elevates customer satisfaction but also enhances cash flow dynamics by freeing up capital tied in stocks.
It’s imperative for leading directors to monitor these timings closely, ensuring their operations are as streamlined and agile as possible within an ever-competitive landscape.
Damage-Free Delivery
Damage-Free Delivery stands as a critical KPI of supply chain management, shedding light on the effectiveness of packaging and handling processes. It reflects the percentage of goods that arrive at their destination without harm, which is paramount for maintaining customer satisfaction and controlling costs.
High performance in this area often signifies excellence in logistics planning and operational execution.
Ensuring items reach customers intact not only enhances brand reputation but also reduces financial losses due to returns or replacements. Directors should note that investing in robust packaging solutions, staff training, and carrier partnerships geared towards preserving shipment integrity can have a profound impact on this key performance indicator within supply chain measures.
Days Sales of Inventory (DSI)
Days Sales of Inventory, commonly known as DSI, is a pivotal inventory performance metric that shines a light on how swiftly your business moves its stock. It’s calculated by dividing the average inventory by the cost of goods sold and then multiplying that figure by the number of days in the period under analysis.
A low DSI points to efficient management entire physical inventory; items don’t linger on shelves but move quickly to customers.
Recognising your DSI enables sound decision-making in both procurement and production planning. This key performance indicator offers clarity on whether you’re holding too much stock or if reordering could be more finely tuned, ensuring capital isn’t tied up unnecessarily.
Mastery over this metric can lead to improved cash flow and reduced storage costs, ultimately bolstering overall supply chain health.
Turn-Earn Index (TEI)
Moving from the Days Sales of Inventory, which focuses on how quickly inventory is sold, we shift our attention to the Turn-Earn Index (TEI). TEI shines a spotlight on a company’s ability to manage its inventory while simultaneously generating profit.
Directors looking to deepen their understanding of supply chain efficiency find this metric revealing; by calculating it using the formula where inventory turnover ratio and gross profit percentage are multiplied and then amplified by 100, they gain critical insights into operational success.
TEI stands out as more than just another number in an executive dashboard; it embodies key strategic value for informed decision-making. It tells you not only how often your stock completes its cycle but also measures the profitability that comes with each turn – akin to double-checking both speed and yield within your operations.
Knowing your TEI helps balance efforts between maintaining ideal inventory levels and maximising financial returns – a crucial balancing act at the heart of effective supply planning KPIs.
How To Take Advantage Of Professional Supply Chain Metrics & KPIs
Maximising the effectiveness of your supply chain relies on leveraging sharp, professional metrics and KPIs to monitor performance, drive improvements and impact the bottom line. Consider these measurements as a strategic toolkit that, when utilised correctly, can elevate your operational efficiency and give you a competitive edge in today’s dynamic market landscape.
Set SMART goals
Setting SMART goals is a pivotal step in harnessing the power of supply chain metrics and KPIs. Precise goal-setting enables directors to pinpoint areas for improvement and set benchmarks that propel their teams towards success.
Consider the full spectrum from supply chain management formulas to planning metrics to freight bill accuracy; each should have clear, actionable targets.
Develop objectives designed to be specific, measurable, attainable, relevant, and time-bound—attributes that shape an effective strategy within any competitive sector. With 79% of companies boasting superior supply chains outperforming average revenue growth in their industries, it’s evident how vital these focused goals are.
Now let us shift our focus on tracking everything regularly to ensure these ambitious targets translate into tangible results.
Track everything regularly
Having established SMART goals, it’s crucial to closely monitor progress by tracking everything regularly. This relentless oversight ensures you stay on top of supply chain performance and can make adjustments when necessary.
Consistent monitoring offers a real-time view into the mechanics of your operations, allowing for prompt detection and rectification of inefficiencies or deviations from set benchmarks.
Keep a keen eye on the movement of goods, inventory levels, and delivery timelines using a supply chain KPI dashboard.
Utilise data to drive every decision in your supply chain management process. Regular checks against key performance indicators for supply chain management such as order velocity, inventory accuracy, and customer order cycle time highlight successes or alert you to potential issues before they escalate.
With accurate KPI tracking rooted in efficient data collection and analysis, directors are equipped with the actionable insights needed to steer their supply chains toward maximum productivity and effectiveness.
Integrate financial and supply chain insights
Combining financial acumen with detailed supply chain analytics provides a robust framework for decision-making. Directors can pinpoint cost-saving opportunities and boost efficiency by examining metrics like cash conversion cycle through-to-cash time cycle, freight bill accuracy, and inventory turnover alongside financial data such as gross margin return on investment (GMROI) and days sales outstanding (DSO).
This integrated approach allows not only for tracking the flow of goods but also for measuring how it impacts the financial health of the organisation.
Through close monitoring of these critical supply chain indicators, companies can align their supply chain operations with broader business objectives. Utilisation of enterprise resource planning (ERP) systems facilitates this alignment by consolidating information into accessible business dashboards.
ERP systems enable directors to swiftly adapt strategies in response to real-time insights, merging supply chain velocity with fiscal performance to drive overall success. Moving forward, let us explore actionable steps you can take to harness professional supply chain metrics and KPIs effectively.
Conclusion
Harness the power of supply chain metrics and thrive in a competitive market. Implement these vital KPIs to navigate through complexities high performing supply chains with finesse, ensuring seamless operations and robust growth.
Keep your finger on the pulse – track, analyse, and adjust for peak performance. Propel your business forward by mastering these indispensable tools of trade excellence. Elevate your strategic decision-making; let data-driven insights guide you to unprecedented success.
FAQs
1. What are supply chain KPIs?
Supply chain key performance indicators, measure how effectively a company manages its supply chain operations.
2. Can you give examples of common supply chain metrics?
Sure! Common metrics for measuring supply chain performance include stock velocity, service rate, forecast accuracy, and the carrying cost of inventory.
3. How do businesses use these KPIs to improve their operations?
Businesses analyse these key performance indicators to refine logistics metrics, mine inventory data assess pricing strategies, boost the service rate, improve customer satisfaction and enhance overall efficiency in their supply chains.
4. What is meant by ‘supply velocity’ in terms of supply chain management?
Supply velocity refers to how swiftly goods move through a company’s supply chain from suppliers to customers.
5. Why is it important to select appropriate KPIs for my business?
Selecting the right KPIs allows you to focus on the most critical aspects of your operation that impact customer satisfaction and financial performance directly.
6. Are there specific KPIs recommended for managing an omnichannel strategy?
Yes – when managing an omnichannel approach, it’s crucial to have clear metrics like forecast accuracy and fulfilment rates as part of your SCM (Supply Chain Management) strategy.
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