Supply Chain Analytics: Reporting Fundamentals
This blog post is all about why reporting is super important for supply chain managers. We're going to give you some super helpful reports to help you assess performance, like inventory, order cycle time, supplier performance, transportation, cost of goods sold, and goods in transit reports. To make sure you're doing your best, you gotta set clear goals and KPIs, build strong relationships with your suppliers, implement tech solutions, improve communication and collaboration, and keep an eye on your performance. So let's get started and make your supply chain the best it can be!
In the crazy fast business world we're living in today, supply chain reporting is super important for all those supply chain managers out there trying to keep things running smoothly. And there are a lot of things to keep track of! It might seem like a lot, but if you keep an eye on all these things, you'll be able to make some pretty smart decisions about how to optimize your supply chain and improve your whole organization's performance.
Which Reports Help You Assess Your Performance?
As a supply chain manager, it is crucial to have an accurate understanding of the performance of your organization's supply chain processes. To achieve this, here are a few key reports that you can use:
It provides an overview of the inventory levels of your organization. It helps in identifying the inventory holding costs, slow-moving inventory, stockouts, and excess inventory. It enables you to make informed decisions about inventory management, such as ordering, stocking, and forecasting. An inventory report should display the following information:
- Quantity of products in stock
- Cost of products in stock
- Value of products in stock
- Quantity of products ordered
- Quantity of products sold
- Quantity of products returned
- Quantity of products scrapped or wasted
- Cost of products ordered
- Cost of products sold
- Value of products sold
- Gross margin on products sold
- Inventory turnover ratio
Order Cycle Time Report:
This report provides insight into the efficiency of your order fulfillment process. It helps in identifying bottlenecks and delays in the process, and enables supply chain managers to make process improvements to improve cycle times. A cycle time report should display information about the efficiency of the order fulfillment process, including identifying bottlenecks and delays in the process
Supplier Performance Report:
This report provides insight into the performance of your suppliers. It helps in identifying the lead time, quality, and delivery performance of each supplier, and enables supply chain managers to make informed decisions about which suppliers to work with and how to optimize the supplier relationship. A supplier performance report should include information such as:
- Lead time for delivery
- Quality of the products delivered
- Delivery performance
- Number of orders fulfilled on time
- Number of orders fulfilled with the correct products
- Number of defective products delivered
- Number of products returned
- Number of late deliveries
- Number of lost or damaged shipments
- Overall satisfaction with the supplier relationship
This report provides insight into the transportation processes of your organization. It helps in identifying the cost, time, and efficiency of transportation processes, and enables supply chain managers to make informed decisions about transportation management. A transportation report should include information such as:
- Total transportation cost
- Average transportation cost per unit
- Transportation cost by mode (e.g. truck, ship, air)
- Transportation cost by carrier
- Average transit time by mode
- On-time delivery percentage
- Damages and losses during transportation
- Carrier performance metrics
- Fuel efficiency metrics
Cost of Goods Sold Report:
This report provides insight into the cost of producing and selling your organization's products. It helps in identifying the costs associated with production, such as materials, labor, and overhead, and enables supply chain managers to make informed decisions about cost management and pricing strategies. A cost of goods sold report should include information about the costs associated with production, such as materials, labor, and overhead, as well as the cost of selling the organization's products. This is important to a supply chain manager because it provides insight into the profitability of the organization's products, which can help inform cost management and pricing strategies. By understanding the costs associated with producing and selling products, supply chain managers can make informed decisions about how to optimize supply chain operations and maximize profits.
Goods in Transit Report:
By monitoring and reporting on goods in transit, supply chain managers can ensure that goods are delivered on time and in good condition, and can take action to mitigate any risks or delays that may impact the delivery of goods. A goods-in-transit report covers the following aspects:
- The location of goods in transit at any given time
- The estimated time of arrival (ETA) for goods in transit
- The condition of goods in transit (e.g. temperature, humidity, shock)
- The estimated time of departure (ETD) for goods in transit
- The mode of transportation for goods in transit (e.g. air, sea, truck)
- The carrier or logistics provider responsible for transporting the goods
- The cost of transportation for goods in transit
- Any potential risks or delays that may impact the delivery of goods in transit
- The documentation required for the shipment of goods in transit
- Any customs or regulatory requirements that may impact the delivery of goods in transit
How Supply Chain Managers Drive Value For Their Organization
By tracking these reports, a supply chain manager to optimize the performance of their job. But let’s not stop here. What else can you do to drive value for your organization? Here are some aspects to consider:
Establishing clear goals and KPIs:
By setting specific goals and key performance indicators (KPIs), supply chain managers can measure and track the performance of their team and identify areas for improvement.
Building strong relationships with suppliers:
Developing strong relationships with suppliers is essential for ensuring timely and efficient delivery of goods and services. By working closely with suppliers, supply chain managers can negotiate better pricing and terms, and identify opportunities for process improvements.
Implementing technology solutions:
Technology solutions, such as supply chain management software, can help automate and streamline supply chain processes, reducing errors and improving efficiency. Supply chain managers should evaluate technology solutions to identify those that will best meet the needs of their organization.
Improving communication and collaboration:
Effective communication and collaboration among supply chain stakeholders is critical for optimizing performance. Supply chain managers should work to establish clear communication channels and encourage collaboration among team members and partners.
Continuously monitoring and analyzing performance:
By continuously monitoring and analyzing supply chain performance, supply chain managers can identify areas for improvement and make data-driven decisions. Regularly reviewing performance metrics and KPIs can help supply chain managers stay on top of trends and make informed decisions to optimize supply chain operations.
Learn how a global chemical company improved their supply chain risk exposure here.
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