The five most important supply chain metrics for process manufacturers

Data is at the heart of good decision-making. “You can’t improve what you don’t measure,” as the saying goes.

But can there be such a thing as too much data?

Excessive amounts of complex or hard-to-get data can be overwhelming, confusing, and make it hard to focus on priorities.

Measuring every possible supply chain metric, actually make it harder to calculate and calibrate results, and is near-impossible to identify the right supply chain metrics to measure your performance.

In fact, one of the biggest mistakes of manufacturing supply-chain decision-makers is focusing on too many metrics.

Equally, too few metrics may not give you enough information to guide business decisions.

The key is in finding the metrics that work together to give you an overview of business operations.

It’s about measuring the right KPIs.

To start seeing results from all that measuring, tracking and analysing, you have to connect your metrics to your business strategy.

Used correctly, the data from your business systems can show you you are performing against overall strategies.

Just a few well-chosen KPIs can act as an early-warning system, giving you fast insight into potential issues that could affect revenue or customer satisfaction – and giving you the time to fix those issues.

Really, there are just 5 key performance indicators governing your manufacturing supply chain:

  • DIFOT (delivery in-full & on-time) – a measure of perfect orders
  • Forecast accuracy – a measure of forecast usefulness
  • Supplier performance – a measure of supplier reliability & quality
  • Inventory accuracy – a measure of inventory against planned service levels
  • Throughput – a measure of the performance of production & the supply chain.

Discover how you can keep your manufacturing supply chain lean, agile and efficient using just five important metrics

Download the whitepaper to learn how you can use the hundreds or thousands of data points gathered and stored by your ERP, supply chain, MES and quality systems every day, to get an at-a-glance understanding of the health of your supply chain, understand your business operations, and pinpoint potential issues or areas for attention.

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DELMIAWorks manufacturing ERP software

DELMIAWorks (formerly IQMS) provides mid-market discrete and process manufacturers with an end-to-end ERP (Enterprise Resource Planning) System and real-time production monitoring solution, to improve the efficiency and productivity of your manufacturing business.