Supply Chain Management

· Existence of Business Plans

· Deployment of Business Plans

· Who reports to who in the Supply Chain

· Existence of Service Level Agreements

· Frequency of employee survey

· Performance of MRPii process

· Number of times product is handled

· What Cross functional KPIs

· Software used to support Supply Chain

· Electronic commerce used in what activities

Procurement and Supplier Management

· Procurement Policy Document

· Where does Procurement Mgr report

· Strategic Supplier Base Analysis

· Supplier Evaluation Program

· Number of joint improvement programs

· Rationalising Supplier Base

· Number of Sole Suppliers

· Length of contacts with Suppliers

· What KPIs to manage procurement

· No. & Value of Purchase Orders

Inventory Management

· Inventory Policy document

· Pareto analysis of Inventory

· Customer and Product profitability

· Stock turn performance standards

· How often lead times reviewed

· Who owns Finished Goods Inventory

· Who owns Sales Forecast

Distribution Centre / Warehouse Management

· Frequency of stock taking

· Random storage in DC

· Barcodes and scanners used in DC

· Picking documents printed in printing sequence

· Batch Picking

· Products ordered together stored together

· Timeslotting in DC

· KPIs used to manage DC

Transport Management

· How many transport contractors used

Customer Service

· Number of customers

· Customer Service Policy Document

· When is invoice created

· Customer Research into Service Performance

· Use customer research to develop SC strategies

· Customer payment terms

· Customer Service KPIs used

Practical Example of KPI Usage

A large company has several departments each with their own team leader, these team leaders have to report to their departmental managers who in turn report to the general manager. Each week the team leaders have meetings with their staff and they in turn report to their managers. Every two weeks their managers report to the general manager so that they in turn can report to the board.