From semiconductors to construction materials, recent supply chain upheavals - with material shortages, ports congestion, and the consequences of a global pandemic resulting in production disruptions and factory shutdowns—have made it difficult for consumers to get hold of everyday products. While customers scramble to find even baby formula, there lies a bigger concern for those in the supply chain world: Is this going to be our “new normal” for the long haul? Not only are companies fighting against a myriad of political and environmental challenges, but a growing inflation could just be the last straw. Disruption is not new, but there is disagreement among organizations as to how to cement the cracks across the entire chain while still remaining profitable. Rather than cement, it’s time to redefine supply chain instead.
End-to-end visibility of supply chain performance will be a key differentiator for this purpose, but data visibility is just the tip of the iceberg. Leaders need to set the right key performance indicators (KPIs), measure, and analyze the results so they can orchestrate their entire supply chain with ease. With the right KPIs in place, organizations can become agile enough to identify bottlenecks, eliminate manual errors, analyze risks, and predict outcomes to increase resilience during uncertain times. Knowing which vendor, product lines, and routes are at risk empowers you to be agile enough to change course at any given time with confidence.
Top Order Fulfilment KPIs to Unblock Bottlenecks
In 2015, Target’s entry into Canada came to a halt with mismatched inventory and barcode issues on Barbie toy cars that led to over $2 billion in losses. A classic case of poor order fulfillment and frustrated customers; the toy car fiasco was so overwhelming that it has kept Target out of the Canadian market ever since. Having a smooth order fulfillment system that communicates effectively with customers about shipping is an essential part of being able to compete in today’s fast-paced environments. Here are a few KPIs to support your order fulfilment goals: