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1、Developing An Overview of Supply Chain Performance Metrics,Process, Recommendations,McKinsey,This document gives an overview of the different metrics that can be used to measure supply chain performance,The Supply Chain CoEs objective is to define a benchmarking framework capable of: Comparing gener
2、ic metric performances for use on projects. Capturing further benchmarking data in a consistent format. The London Shops task: Develop an overview of the different metrics to measure supply chain performance. Select the most important metrics that can be used across industries. Discuss how the most
3、important metrics link other operational metrics within each stage of the supply chain. Suggest how the supply chain CoE should continue concerning this topic.,We used information from several sources during our project,Internal and external documents: High level benchmarking framework for supply ch
4、ain performance (H .Cook): Shop Study (March 1997) accessing information from available experts and past projects. Supply chain benchmarks and best practice (Dow Polyurethane In-Industry and In-Company similarities and differences.,Making their client specific warrants attention (cont.),Recognise Cr
5、oss-Industry; In-Industry; and In-Company similarities and differences. Interface the solution to the current clients measures, systems, processes and culture: . . . and guide migration over time.,Ensure accountability for collecting and actioning is clear.,Proposed Supply Chain KPIs,KPIs help to id
6、entify “where” the performance problem is within the supply chain, and steer towards areas to explore “why”.,Accuracy (as % of sales),Customer satisfaction,% of satisfied customers,Total cycle time,Time (for customer) from placing order to receiving goods,% of products delivered on time,Total supply
7、 chain cost as % of sales,Cost per product sold as % of sales,Cost as % of sales,% of products delivered according to customer order (quantity/quality),% of customers satisfied with service,% of products ordered already in stock,Defect rate of products as % of production,% of goods delivered accordi
8、ng to order (quantity/quality) by supplier,Time from order placement to reception of goods,Time from production order to delivery into finished product warehouse,Downtime as % of total production time,% of goods delivered on time by supplier,Cost as % of sales,Cost as % of sales,Cost as % of sales,N
9、umber of stock turns/years,Total Supply Chain,Quality,Time,Cost,% of active suppliers that account for 90% of total purchase value,BEWARE of inter-relationships,Each stage of the supply chain has a variety of metrics to monitor operational effectiveness,These metrics help identify “why” there is a p
10、erformance problem.,Actual vs. forecasted sales % of data which can be used without modification in the planning process,% of all active suppliers that account for 90% of total purchase value % of correct orders placed # of alternative sources of supply # of suppliers involved in product development
11、/innovation # of suppliers per purchasing employee (purchasing professional) # of vendors products ordered Purchasing head count as % of total head count,% of goods delivered according to order (quantify/quality) by supplier # of carrier alliances # of overshipments % of direct material purchases th
12、at are not inspected at incoming quality assurance, going from stock to dock % of direct material purchases that are not inspected at incoming quality assurance, going from stock to production % of orders delivered without unplanned communication or special attention,Defect rate of products as % of
13、production Scrap rate as % of production # of changes per production period % of goods repackaged Actual vs. production capacity,Time from order placement to reception of goods,Time from production order to deliver into finished product warehouse,% of accounts payable handled before due date % of ac
14、counts payable handed in 130 days % of accounts payable handled in 3160 days % of accounts payable handled in 6190 days % of accounts payable handled in over 90 days % of suppliers connected via EDI Average actual time to developed/negotiate a contract,% of goods delivered on time by supplier Propor
15、tion of suppliers who deliver daily Proportion of suppliers who deliver frequently than monthly Proportion of suppliers who deliver monthly Proportion of suppliers who deliver twice weekly Response time to schedule changes Response time to unforeseen problems Turnaround time on rejected items,Averag
16、e production leadtime Current manufacturing leadtime Minimum production leadtime,Downtime as % of total production time Downtime due to parts shortage (or stock outs in general) Hours of unplanned downtime,Cost as % of sales,Cost as % of sales Cost as % of total costs Cost of orders purchased (range Cost of vendor transactions (range) Cost of expedite repair materials Purchasing spend per supplier Purchasing spend per purchasing employee (purchasing professional),Cost as % o
