You want to improve or monitor the performance of your supply chain. You need to have key indicators that give a clear picture of the situation at a given moment in order to:
- Compare with previous periods and measure the evolution of performance,
- Compare with other companies in the same sector,
Based on these elements, you will be able to:
- Supervise/control the supply chain,
- Identify areas for improvement and actions to be taken,
- Measure the effectiveness of the actions taken
The choice of indicators is essential. It will depend on the sector (ADV, Assembly, Manufacturing, Procurement, etc.) of the company and the improvement objectives (lead times, service rates, logistics costs, etc.) That being said, the organization of the supply chain must be efficient and effective in the following areas:
- Balance of stock and work in progress,
- Reliability of lead times (service rate),
- Availability of parts (reactivity),
- Synchronization of production steps.
The main indicators to monitor in order to measure the performance of the organisation will therefore be:
- Coverage and stock valuek
- Global company,
- By type of item (finished products, sub-assemblies, components, PM, etc.),
- By item ranges,
- Stock balance
- Global company,
- By type of item (finished products, sub-assemblies, components, PM, etc.),
- By item ranges,
- The customer service rate (number of order lines delivered per hour)
- Global company,
- By range of finished products,
- By types of customers,
- The break rate ((missing pieces prevent launches in production)
- Global company,
- By sector: assembly, production, supply,
- The “supplier” service rate
- Global company,
- By items ranges,
- By type of supplier,
- By supplier.
How to improve the performance of your supply chain?
