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Our Top 4 Supply Chain Management Performance KPIs

Our Top 4 Supply Chain Management Performance KPIs

Are You Extracting Full Value from Your Supply Chain?

Gaining competitive advantage is a challenge, particularly in a demanding marketplace. Optimizing supply chain management can make a measurable difference, and further differentiate your company. Beyond lowering material costs, value can be realized from taking strategic initiatives that build customer satisfaction, loyalty and even expand your customer base.  The strategy focuses on driving continuous improvement in supplier performance.

Begin to add value by identifying key performance indicators such as:

Improving Your On-Time Delivery to a Customer Requirement Date

On-time delivery is the hallmark of a world-class company in any industry. Evaluating business value is the first step, regardless of the eventual goal you set, i.e., 500 basis points. This performance indicator has tangible and intangible benefit—both impact how you are seen in the marketplace. Warehouse management  to improve on-time delivery is vital to supply chain management.

Increasing Your Quality Acceptance Rate

A high-quality acceptance rate may be the deciding factor in a contract renewal, getting a new customer, or the difference in achieving a preferred vendor status. Long term relationships in industrial procurement services are a real added-value. Setting a goal, say 300 basis points, is a positive way to begin to assess that value.

Examining the Value of Reducing Product Lead-Times

Strategic business decisions can be made closer to the time a product appears in the market, a distinct benefit of shorter lead times for the client. Shorter lead times provide a competitive advantage; they better meet customer’s needs for market availability and increase sales. They also impact the amount of the spare parts inventory in a system—providing numerous cost-benefits. Shorter lead times can be obtained by engaging in a full value supply chain management solution.

Measuring the Value of Removing Significant Inventory Levels from Your Balance Sheet

The value of inventory planning cannot be overstated—the cost of carrying inventory can run as much as 30% of the value of the inventory per year. A customized inventory program, as offered by ATC, can take over a customer’s inventory in entirety, and can provide cash for the inventory. ATC provides inventory analysis, and strategies to optimize efficiency. The result is an improved bottom line.

Each of these key metrics can be quantified, and accelerate your trajectory as a marketplace leader. For example, kitting services can optimize inventory management and performance leading to a reduction of purchase orders, and the savings associated with a smaller inventory. Once you have ascertained the value of each, take steps to assure that you have the right strategies in place to capitalize on them.

It begins with resources—human and technological. It means you must have the right people, processes, and technologies to achieve your desired results. Identify priorities and put those action items into a timeframe.

When Supply Chain Optimization is Not a Core Competency

Some companies consider supply chain management a core competency. The supply chain adds to the success of the business. Other companies may not, or are unable to achieve full value. The answer then, lies in outsourcing supply chain management to a partner who will allow you to focus on core competencies while generating the added-benefits of an optimized supply chain.

The right partner delivers sustainable competitive advantage by providing the expertise, staff, and technology necessary to realize significant value across the supply chain. This could include kitting services, order fulfillment, warehousing, spare parts sourcing—a full range of integrated supply management services.  An outsourced supply chain management solution can also help achieve working capital benefits by purchasing your inventory, and generate operating efficiencies by being a single source for categories of items needed to run your business. They can manage fulfillment, back office accounts payable processes and the entire end-to-end procure-to-pay process.

The bottom line to supply chain optimization is a competitive advantage.

How ATC Works to Add Value

ATC works in collaboration with its clients to identify supply chain requirements and quantifiable value elements and metrics. This includes order fulfillment and managing inventories, sourcing and managing suppliers, warehouse management, and taking ownership of the person-to-person (P2P) process.

They are all part of a managed supply chain solution that optimizes and drives continuous improvement. In addition to supply chain value, it allows a business greater focus on their core business, greater market share, improved speed to market, and profitability improvements.  Find out how ATC can help your business realize the full value of your supply chain.

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