Supply chain

The Cluster

SUPPLY
TRANSPORTATION
CHAIN

OPERATION
S
LOGISTICS

INVENTORY
FORECASTING
 SUPPLY CHAIN
DIRECTOR
Jaime

SUPPLY CHAIN
CONSULTANT
Romi

SUPPLY CHAIN SUPPLY CHAIN SUPPLY CHAIN

ANALYST CO-ORDINATOR MANAGER
Johnny Tammy Sammy
A normal day for a Sammy the supply
manager
 8:30am – Check the e-mails (from overseer suppliers)
 9:00am – review and resolve daily delivery issues
 10:00am – attend cross functional meeting
 12:00 – lunch and e-mails
 1:00pm – review and approve documents
 2:00pm – meetings with key customers and superiors
 3:00pm – discussion with manufacturing and warehouse abot next day
 4:00pm – calls
 5:00pm – urgent late afternoon meetings
 7:00pm – hopefully done for the day
Sammy’s Job Duties

 Communication
 Transportation
 Planning and Analysis
 Inventory Control
 Management
SUPPLY CHAIN TEAM

 HR
 CEO and VP of Sales
 VP Marketing
 Cost accountants
 Product Development
 Chief Risk Officer
Key Performance Indicators

 Broadly speaking though, the following areas are those where KPIs will be
necessary:
 Order capture
 Inventory management
 Purchasing and supplier management
 Production/manufacturing
 Warehousing
 Transportation
 Cross functional KPIs are likely to provide snapshots of the following end-to-
end performance factors:
 Perfect order (the degree of accuracy to which customers’ requirements are being
met)
 Inventory levels
 Stock losses and/or damages
 Gross profit
 Cost of goods sold
 Total logistics cost
KEY PERFORMANCE INDICATORS FOR
LOGISTICS

 Order accuracy
 On Time in Full(OTIF)
 Lead time
 Truck Turning
 Capacity utilization
 Productivity
 Transportation Costs
 Number of shipments
Key performance Indicators-Demand
Planning/ Forecasting

 Forecast accuracy
 Sales plan performance
 Supply vs demand collaboration
 Statistical forecast vs customer forecast
Key performance Indicators - Operations

 Manufacturing orders in progress

 On-time / Late Manufacturing orders
 On-time / Late deliveries
 Planned production time vs. Actual time
 Planned cost of production vs. Actual cost
 Planned consumption of materials vs. Actual consumption
 Equipment usage chart
 Number of Quality Part Accepted Vs Rejected
Key performance Indicators - Inventory

 Critical on-hand stock

 Total worth of inventory
 Percentage decrease in inventory carrying costs
 Savings in inventory carrying costs
 Stock rotation
 Warehousing cost
 Key performance Indicators -
Transportation Department
 Annualized inventory turns
 Annualized cost of goods sold (COGS)/average daily inventory value
 Book to ship days
 Average of shipped date - Firm date (booked date used if no firmed date)
 Booked order value
 Customer order promised cycle time
 Inventory months of supply
 On-time pickups
 Planned on-time shipment
 Planned resource utilization
 Planned resource usage
 Time elapsed from pick release to ship confirm
 Transit time
Procurement and Purchasing - KPI

 Design release- Actual vs target

 Sourcing- Actual vs target
 Quotation receiving - Actual vs target
 Time Taken for Purchase request approval
 Time Taken for PO approval Time
 Material dispatch Tracking from the date of PO
 Percentage material cost reduction.
REFERENCES

 https://www.bestvalueschools.com/lists/5-job-duties-of-a-supply-chain-
manager/
 https://www.logisticsbureau.com/kpi-key-performance-indicator/
 https://logisticsviewpoints.com/2010/09/08/the-supply-chain-team/