Sustainable Solutions for SCM

Here, we are mainly looking at key performance indicators. There are numerous KPIs that could be used in a supply chain context. Empirical surveys show that there are some commonly used KPIs for the measurement of the supply chain performance. To illustrate this, Table 3.1 shows the results of three different surveys with different characteristics that were conducted over the last twenty years in different regions. Table 3.1 Results of empirical surveys on supply chain KPIs

Metrics area/ In-for- mation aspect (avg. capture)

Capture over average

Capture under average

Involved Trading Partner (59%)

Customer complaints, on-time de- livery, over/short/damaged, returns and allowances, order-cycle-time, overall customer satisfaction Inventory account accuracy, order fill, out of stocks, line item fill, back orders, inventory obsolescence, incoming material quality Outbound freight cost, Inbound freight cost, Inventory carrying cost Finished goods inventory turns, or- ders processed/labour unit, product units processed per warehouse unit Space utilisation vs. capacity, equip- ment downtime

Days sales outstanding, forecast accuracy, invoice accuracy, perfect order fulfilment, inquiry response time Processing accuracy, case fill, cash- to-cash cycle time 3rd party storage cost, logistics cost per unit vs. budget, cost to serve Units processed per time unit, product units processed per trans- portation unit Equipment utilisation vs. capacity, labour utilisation vs. capacity Cash-to-cash cycle, company value Compatibility of data-standards, extent of supply chain, data-trans- parency, compatibility of IT-systems, trust, quality of interfaces, supply chain complexity (strategic level) Geographical distribution, efficien- cy potential, lead time potential, time-to-market, reaction time to inquiries

Internal Focus (61%)

Cost (61%)

Keebler 1999

Productivity (44%)

Utilisation (42%)

Financial metrics (70%)

Actual cost vs. budget

Strategic level (40%)

Accuracy of planning systems, degree of uncertainty, cooperation need, power distribution

Operative level (63%)

Inventory, delivery reliability (on time, in full), capacity utilisation vs. capacity, order lead time, customer satisfaction, network complexity (operative level) Freight cost, total logistics cost, inventory carrying cost, cost of administration in logistics Customer complaints, customer satisfaction Delivery reliability (on time, in full), turn rate, inventory account accu- racy, labour utilisation vs. capacity, space utilisation vs. capacity

Liebetruth 2005

Financial metrics (60%)

Cost of mistakes, customer profit- ability, turnover per working hour

Customer metrics (50%) Process metrics (58%)

Returns, reaction time to inquiries, accuracy of billings Order lead time, downtimes, or- ders processed per time unit, units processed per time unit, equipment utilisation vs. capacity, orders pro- cessed per employee, units processed per employee

Weber et al. 2012

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