By tracking, analyzing, and understanding this stream data on a regular basis, you will be able to prepare for, and avoid, any stock-based calamities in an emergency situation, saving your reputation and cash flow in the process. Working with three core ratios - the days of inventory (DOI), the days of payables (DOP), and the days of receivables (DOR) - the cash-to-cash time cycle KPI visualizes the period required between the moment a business pays cash to its suppliers and the moment it receives cash from its customers. Concerning the continual growth, evolution, development, and success of your company’s supply, fulfillment, and delivery efforts, supply chain performance metrics are the most invaluable tools available at your fingertips. Celui-ci permet de piloter les KPI aussi bien individuellement que de manière collective. You can calculate this supply chain KPI by subtracting the order delivery date from the day the customer created the purchase order. For example, if you have a big peak of sales for Christmas, you will have a lot of stock before with few sales (many days of stock) before the peak then many sales and few stocks after the peak. Metrics and KPIs are critical in improving a company’s supply chain strategy. Its advantage is that it is quantity-weighted (or value), unlike the availability rate. You can simultaneously manage a service rate on time for orders shipped and a service rate on time for orders delivered on time to manage both the quality of your stock management firstly and the quality of your logistics secondly (order preparation + transport times). Also called stock life or stock coverage, it is the average number of days that the stock takes to run out. This calculation is only made on the active references of the catalog. We can see the curve flattening out when you win your last percentages. For example, you can ship 100% of your products ordered by your customer but only deliver 50% within the time requested by your supplier. Quels KPI’s pour évaluer l’efficacité de sa Supply Chain ? Remember: Today, access to your metrics 24/7/365 is really important, what online data analysis tools can guarantee and ensure that your chances of long-term success increase. Walmart and Amazon each have tens of thousands of suppliers, and it’s their prerogative to get them firing on all cylinders through a proactive supply chain strategy and tighter supply chain integration. Example: I have 100 products in my catalog, only 70 are available for my customers, so I have the availability of 70/100 = 70%. A supply chain dashboard provides an at-a-glance window into your operations and enables you to manage all those moving parts. What is a Supply Chain Dashboard? Food & beverage (F&B) read more A higher DSO level demonstrates that a company is selling its product to customers on credit and taking longer to collect revenue in a tangible sense, which can stunt cash flow and minimize profits in the grand scheme of things. For more data-driven wisdom, check out these great dashboard designs that you can get inspiration from. Later in this article, I will suggest some rather more comprehensive guidelines, b… Essentially, a low, or healthy, DSO number means that it takes a business fewer days to collect its accounts receivable. 6. However, despite the clear-cut value of developing an efficient supply chain, 40% of companies aren't looking at supply chain performance metrics or automation to improve their processes. Infelizmente não é uma pergunta fácil. Yes, quite possibly the best KPI (Key Performance Indicator) for Supply Chain & Logistics. Our graph below summarizes this principle. This is the percentage of orders in quantity delivered on time. Instead of using past sales, you can use future sales forecasts to estimate your future inventory turnover. I recommend a one-week period to start. Also, the more stock you have, the less « efficient » it will be. The attributes of an effective supply chain will offer transparency, flexibility and alignment to tailor the system to the strategic benefit of the organisation. If you have items with a short shelf life, do this calculation per month, or over the (more complex) shelf life of the product. However, it will alert you to the future risks of breakage and overstocking. Stock life = 1,000,000 / 5,000 = 200 days. One of our most powerful business dashboards, the supply chain dashboard boasts a digestible, functional, and visual representation of all key areas of supply chain performance, from inventory accuracy and turnover to the inventory-to-sales ratio.
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