Supply chain 2020 project it is also important for an excellent supply chain to have an operating model and business strategy that are supported by a balanced set of operational objectives and associated metrics. Measuring supply chain performance through kpi identification and evaluation. How a wellexecuted supply chain control tower can accelerate. Sap apo is a popular supply chain planning tool among many fortune companies today. Realizing a digital supply chain infosys consulting. The guide also includes functional level metrics that measure performance specific to the functions of inventory management and distribution management. The series starts in may when fullyear corporate reporting is complete for. The gartner hierarchy of supply chain metrics has long been regarded as the industry standard for endtoend supply chain performance measurement. Apo is a powerful tool that can help you create better demand forecasts and finished goods plans, when properly implemented together with appropriate training for the planning professionals. The series starts in may when fullyear corporate reporting is complete for the prior year. Would you like to learn more about our consumer packaged goods practice. Dec 12, 2017 theres a wide variety of metrics available when assessing supply chain performance metrics and each will provide a slightly different perspective of the piece of the supply chain it measures. Manufacturers and distributors in the consumer goods industry face unprecedented pressure to provide a greater variety and quality of products, simplify complex supply chains, and compete with the price.
The dod supply chain metrics guide is the result of collaboration with the military departments. Measuring supply chain performance through kpi identification. Within the world of supply chain management scm, each industry is unique. Excellent supply chains in the consumer packaged goods. At the same time data analytics enables supply chain visibility and identifies potential risks. Performance measurement is an important but complex subjectsubject companies see the need for metrics. Every company today runs on data the key to using your data is choosing the right metrics for visibility into your supply chain. Datadriven sales will also help align the supply chain with manufacturing to enable leaner operations. From silos to collaboration 22 bridging the procurement supply chain divide 23 cpg retail collaboration.
Pdf is cashtocash cycle appropriate to measure supply chain. Is the organizations progress in extended enterprise management worldclass. The gartner supply chain benchmarking database includes 17 metrics across seven core process areas spanning multiple industries and geographies. Total logistics, now part of accenture, reengineers supply chains to reduce complexity and keeps your supply chain fit for purpose supply. Moredetailed benchmarks show that supply chains can still yield significant valuebuilding on the investments so many cpg companies have already made.
Supply chain metrics that matter will be a series of reports published intermittently throughout the year by supply chain insights llc. Supply chain control tower can accelerate digitals business benefits retailers, manufacturers and consumer goods companies can overcome failed and fractured supply chain digitization efforts by focusing on key performance metrics instrumented through proper predictive analytics and effective use of data shared. Supply chain metrics that matter is a series of monthly reports published from august. Stanford supply chain forum call it distribution or logistics or supply chain management. Apo is a powerful tool that can help you create better demand forecasts and finished goods plans, when. Improving supply chain efficiency in cpg and retail. Pdf in this paper, the cashtocash cycle time c2c and financial performance metrics of seven selected industries integrator, apparel, electronics. Supply chain resources for consumer packaged goods one network for cpg and retail one networks solution for cpgretail optimizes, automates and tracks execution of the entire inbound and outbound. Pdf finding the true voice of the customer in cpg supply. In the manual plotting of these results, we could see. Supply chain 2020 project it is also important for an excellent supply chain to have an operating model and business strategy that are. Operations practice excellence in supply chain management.
Our supply chain consultants help clients rationalize their strategic supply chain decisions by completing location and depot analysis, network modelling, visualization and by running costtoserve analyses. Excellent supply chains in the consumer packaged goods industry. Supply chain risk management helps a renowned client in the cpg industry save millions overview of the cpg industry the global consumer packed goods cpg industry typically consists of groups. Directly linked to the previous fmcg kpi, calculating your supply chain costs as a portion of sales will give you an understanding of how much you are spending relatively to the whole. All 17 key metrics for supply chain management that you. All 17 key metrics for supply chain management that you ever need updated view larger image to make rapid decisions in todays fastacting environment, we need smart, timesaving, easy to interpret. In our plotting of industry results for the supply chain metrics that matter report s, we could see that certain. Supply chain management on the ceo agenda 7 is your top team undermining your supply chain. Supply chain risk management helps a renowned client in the cpg industry save millions overview of the cpg industry the global consumer packed goods cpg industry typically consists of groups including appliances, toiletries and cosmetics, and food and beverage. We provide process and strategy consulting services to. A kane research study key supply chain challenges of mid. The purpose of the supply chain challenge study is to investigate cpg manufacturer strategies for coping with the supply chain demands of major retailers.
Jun 26, 2018 inhouse operations teams, however, focus on input kpis, like overall equipment effectiveness and forecast accuracy, which helps drive decisions on how best to optimize the supply chain performance, according to an email sent to supply chain dive by ildefonso silva and ketan shah of mckinseys various supply chain practices. The guide also includes functional level metrics that measure performance specific to the functions of. Stop light alerting red, yellow and green highlighting is used to highlight exceptions to the plan and then can be used to prompt drill down to more detail. Cpg supply chains, and offers the basis for advancing our understanding and. Measurement of logistics and scm key performance indicators kpi is an essential part of the global supply chain cpg collaboration concept. Is the current supply chain operating at maximum efficiency. In short, it is providing a suitable product at the right time on the spot. In this report series we provide a deep focus on progress over the past. Within the world of supply chain management scm, each industry is. Customers want moremore variety, more convenience, more flexibility, and more service. A mere few years ago, in 2014, leading consumer packaged goods cpg companies were facing a freight capacity squeeze, crushing. A threetier kpi solution is a little more involved, with the top two tiers comprising endtoend supply chain metrics with tier 2 being more granular than tier 1. An overview of supply chain performance metricsperformance metrics 2.
Supply chain control tower can accelerate digitals business benefits retailers, manufacturers and consumer goods companies can overcome failed and fractured supply chain digitization efforts by. Apply to supply chain specialist, senior director, senior supply chain specialist and more. Supply chain costs vs sales compare your supply chain costs against the sales. To help companies understand differences, each report is a deep dive on a different industry. We provide process and strategy consulting services to customers across a variety of industries pharmaceuticals, cpg, hightech, foods and beverage, quick service restaurants and utilities. Besides monitoring the supply c hain costs and supply chain inventories, detailed in table 1 and 2, some indian organizations use standard activity cost measures to manage the supply chain function. This pointofview examines the capabilities that cpg companies must develop to achieve agility with im. This project offers a set of metrics that provide supply chain managers with a forwardlooking approach to predict supply chain future performance and align their strategy with performance outcomes. Directly linked to the previous fmcg kpi, calculating your supply chain costs as a portion of sales will give you an. Driving the clinically integrated healthcare supply chain. Click here to download sample product metrics kpi dashboard excel template for free. Cpg manufacturers use key metrics to monitor business and measure business performance, so when it comes to kpis theres a lot to know. Supply chain management scm is a term that was first introduced by consultants in the early 1980s and has since. Reduction in total value of inventory throughout the supply chain for primary 50% product furthest supplier to end customer over the last three years.
With customer expectations rising at an exponential rate, consumer packaged goods cpg companies are grappling to transform their supply chain and business models to respond to the new demands. Investment in information technologies hardware and software as a percentage of sales threeyear average. The next generation 31 capturing value from supply chain management it 40. Now gartner has translated this framework into a dynamic benchmark database that enables you to compare key supply chain performance metrics with your peers. Note that while medical device, consumer packaged goods, and food industries. Many supply chain management decisions continue to be made as though driving with the rearview mirror. How cpg supply chains are preparing for seismic change. By improving the flow of information and encouraging collaboration between different parties across the supply chain we provide a platform. Reinventing the cpg supply chain with zerobased budgeting. Incremental reductions are no longer sufficient to withstand the pressures of todays. Ask any supply chain leader which metrics are the most important to deliver, and the most common answers are operating margin, inventory turns, and revenue growth. Bridging the procurementsupply chain divide 23 cpgretail collaboration.
Incremental reductions are no longer sufficient to withstand the pressures of todays business environment. Key performance indicators kpis help consumer packaged goods cpg manufacturers measure their effectiveness and progress towards achieving their growth goals. Many supply chain management decisions continue to be made as though driving with the rear view. Performance metrics in supply chain management article pdf available in journal of the operational research society 005. Supply chain dashboard template helps for the effective management of the flow of goods and services, raw materials required and inventory. Performance measurement is an important but complex. By whatever name it is the sinuous, gritty, and cumbersome process by. Cpg companies have traditionally sought to reduce supply chain costs by 2% to 5% a year. For any company, an accurate overview of performance is essential. The gartner supply chain hierarchy of metrics benchmarking.
Improving supply chain efficiency in cpg and retail accenture. Performance metrics gauge growth, peaks, dips and unusual activity. Amsterdam, 2017 fast moving consumer goods analytics framework point of view. Developing appropriate strategies is essential as retailer requirements directly impact a manufacturers operating practices and costs.
Theres a variety of metrics available when assessing supply chain performance metrics and each provide a different perspective of the piece of the supply chain it measures. Supply chain dashboard template helps for the effective management of the. Supply chain metrics that matter supply chain insights. By doing such a spend analysis, you can identify where you could do savings. Key performance measures for supply chain management from the colombian shipyard wilson adarme jaimes1 1 industrial engineering, production specialist, msc industrial. Supply chain management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. Supply chain metrics that matter is a series of industryspecific reports published throughout the year by supply chain insights llc. Digitalizing supply chain logistics with a focus on data management.
The undisputed holy grail in healthcare supply chain management practice is essentially everything related to its effective clinical integration. Pdf demand and supply integration is the subject of increasing scholarly attention. Worldclass performance benchmarks new products as a percentage of total skus launched annually. This licentiate thesis focuses on the analysis of the supply chain performance in manufacturing organisations, i.
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