Measuring Supply Chain Performance: A Solution-Driven Approach
Measuring the performance of your supply chain should not stop at numbers and graphs. The way we view Key Performance Indicators (KPIs) and Service Level Agreement (SLA) performance reviews are not just something we conjure for the sake of a quarterly report. The performance indicators we measure shape our customers’ decision-making process and generate actions to optimize their supply chain and improve their services. In this article, we will discuss a solution-driven approach to measuring supply chain performance and how it can benefit both customers and providers.
When it comes to measuring the performance of your supply chain, it’s important to remember that KPIs and SLAs are not just numbers and graphs that we produce for a quarterly report. These metrics are the key to understanding your supply chain and making informed decisions that can improve your services and optimize your operations.
We Do Not Play the Blame-Game
To truly provide our customers with an accurate view of their supply chain performance, the question of assigning blame should be taken off the table. We see our customers as partners, and we must work together to thrive in a partnership. Naturally, client-vendor dynamics bring forth defensiveness that sometimes translates to messy conversations that stray from implementing solutions, especially when discussing a failure to perform. Taking the approach that no matter the problem, the responsibility is ours allowed us and our customers to meet failure analysis with complete transparency, address root causes no matter where they lay, and address the real issues.
KPIs are not the Same for Everyone
KPIs are not the same for every customer. We build our performance indicators together with our customers so that we know what can truly insert insight into their supply chain. Some customers focus more on inventory KPIs such as Inventory Turnover Ratio or Equipment Utilization Rate. Some would like to measure transportation indicators such as On-Time Delivery, Driver Performance, and even the Use of Packing Materials. Whatever they may be, we focus on providing accurate and comprehensive data via our systems to give our customers the performance visibility they need.
Information in Action
Measuring performance is not something we do for the sake of a graph or a quarterly review. For us, KPIs are something we take outside of the boardroom into the real world. We constantly use KPIs to alert trends, drive changes, and revise processes to give our customers the supply chain solutions they need. If we detect that specific Stock Keeping Units (SKUs) tend to age in a specific warehouse, our team will bring this to your attention and analyze similar trends so you can make informed decisions based on our indicators. We also use automation tools to constantly display and alert anomalies in our customers’ ongoing activity so we can quickly respond to ongoing changes.
Many times, we meet customers that had never been able to see their supply chain trends and data in a way that allows them to make crucial decisions accurately and with confidence. With our systems and data access, we give our customers the ability to see their supply chain performance for what it is. And more importantly, we take it upon ourselves to help our customers overcome challenges and clear their path to achieve their business goals. Because the responsibility is ours.
Measuring supply chain performance should be a solution-driven approach. By taking a collaborative approach to assigning responsibility, building custom KPIs, and taking action on the information gathered, customers can achieve their business goals and optimize their supply chain. Providers can benefit from long-term partnerships, increased customer satisfaction, and the opportunity to develop customized solutions. The future of supply chain performance measurement lies in collaboration and real-time solutions.