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© Supply Chain Visions 2004 – All Rights Reserved

upply

hain     isions®

V

Logistics Measures in Context

Cash-to-Cash Cycle Time

Net Asset Turnover, Return on Net Assets

Days of Inventory in entire supply chain by Activity

Total Safety Stocks as % of total inventory?

Safety (hedge) stocks by customer

Dedicated inventories by customer

Local support inventories

Inventory Turnover

Days of Inventory

Return on Investment

Return on Assets

Asset Utilization

Perfect Order Fulfillment (right item, right qty, right place, right time, defect free, correct documentation)

Overall Customer Satisfaction

On-time delivery to commit, request

Order Cycle Time Variability

Order Processing Accuracy

Forecasting Accuracy

Planning Accuracy

Manufacturing Schedule Adherence

Stockouts against forecast

Filll rates by customer, commodity

Available for Customer Pickup per request

Errors by line item, activity, reason code, etc.

Cycle Count accuracy

Reliability

Upside Production Flexibility

Forecasting/Planning cycle time

% Expedite requests fulfilled

Order Fulfillment Lead Time

Backlog & Back Orders

Aggregate Cycle times by activity

Order Cycle Time

Lead time from order receipt to manufacturer complete

Order Fulfillment Lead Time by customer, commodity

Fill rates by customer, commodity

% expedite requests fulfilled by customer

Capacity Load & Utilization

Flexibility & Responsiveness

Total supply chain management cost as a percentage of sales

Total Delivered Cost as a % of Revenue

Logistics Costs (order mgmt + distribution + freight) as a percentage of sales

Freight costs as a percentage of sales to customer

Distribution costs as a percentage of sales

Inventory shrink and obsolescence as a percent of sales

Labor productivity Analysis

Over, short, damage as % of sales

Returns as a percentage of sales

Costs per line, per order, per activity,  per shift, etc

Load factors, lines per order, Qty per line, etc.(cut?)

Freight costs per pound by mode and destination

Cost

Strategic Measures

Process Measures

Results Measures

Companies should strive for “balanced” metrics

that are more process and strategic in nature

As published in Jan 2003 Issue of Logistics Management

Source:  Supply Chain Visions

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