Supply Chain Management Factors to Consider


With a Supply Chain Management (SCM) solution in place, a business can streamline and centralize their distribution strategy, to eliminate the logistical errors and lack of coordination that can lead to delays. You need your warehousing, ordering and shipping departments to be coordinated.

Supply chain performance improvement requires that a number of factors are considered. The following areas of interest must, at some juncture, be addressed:

Strategic Theory
Such metrics of strategy include defining the company, establishing a budget, managing oversights, as well as creating and maintaining the overall supply chain.

1) New product revenue contribution

2) New stock-keeping unit (SKU) volume

This includes the metrics that drive customer service and working capital (including inventory levels across the supply chain) and that address the many functions of inventory management, distribution requirements planning, demand planning and supply planning.
Some of the metrics reviewed as part of this category include:

1) Forecast accuracy

2) Perfect order rates

3) Working capital

Such metrics that effect your procurement effectiveness and efficiency — strategic sourcing, operations and management of suppliers, contracts and commodities. These include the following details:

1) Sourcing of contracting

2) Sourcing cost

Such metrics as cost and staffing around manufacturing, including engineering, maintenance, material availability, production, quality assurance, and sanitation. These include the following details:

1) Capacity utilization

2) Direct labor vs. indirect labor

3) Manufacturing outsourcing rate

4) Overall equipment effectiveness

Deliveries & Returns
Such metrics include cost and staffing levels for order distribution, fulfillment, logistics, returns/recalls and transportation.

SIMMS 2013 Inventory Management software can help you do that. Using the newest technology to increase both versatility and accuracy, you can keep ahead of the curve and know what you need and where you need it long before the actual requests come in. Contact KCSI here to implement the most versatile and specific inventory and accounting management system on the market today — SIMMS 2013.