Give your data purpose so you can effectively manage your supply chain metrics.
Manufacturing is the backbone to most of what we take for granted. But as anyone working in the manufacturing industry knows, there is a lot of work that goes into ensuring everything goes smoothly.
Managing all the moving parts in your supply chain can be a logistical nightmare unless you have access to the right KPIs and metrics. You need to track the current status of shipments, monitor inventory levels and ensure that all orders you ship are completely accurate. Use these supply chain KPIs and metrics to ensure that your operations are always running smoothly.
Best supply chain metrics to monitor
Many industry leading companies track these measures to monitor the health of their business:
- On-time delivery
- Inventory to sales ratio (ISR)
- Slow moving stock
- Inventory carrying rate
- Stock rotations
- Freight cost per tonne shipped
- Days sales of inventory (DSI)
- Perfect order delivery rate
- Months on hand
- Supplier on-time delivery
Carrying Cost of Inventory
Measure how much it costs to carry inventory.
Measure how many times a year your organization is able to sell your entire inventory.
Monitor the current status and accuracy of orders that are being shipped to your customers.
Inventory to Sales Ratio
Measure the amount of inventory you are carrying compared to the number sales order being fulfilled.
Units Per Transaction
Measure the number of units purchased in each transaction.
Rate of Return
Measure the rate at which shipped items are returned to you.
Percentage of Out of Stock Items
Measures the number of items that are out of stock at the time a customer places an order and compares that to a baseline or target value.
Tracks the real-time status of all orders and categorizes them based on the action taken, such as "On Hold" or "Shipped."
Measures the accuracy of your inventory by taking a headcount of items in stock and comparing it to what's recorded in your database.
Back Order Rate
Measures how many orders are unable to be filled at the time a customer places them.
Perfect Order Rate
Measures how many orders you ship to customers without any incidents.