登录查看更多内容

How can you effectively measure your distribution network's performance?

由人工智能和领英社区提供技术支持

Measuring your distribution network's performance is crucial for optimizing your inventory and delivery processes, reducing costs, and satisfying your customers. But how can you effectively track and evaluate the key metrics that reflect your network's efficiency and effectiveness? In this article, we will discuss some of the most important indicators that you should monitor and analyze, as well as some tips on how to improve them.

此文章中的业界达人

由社区从 3 条内容中精选。了解更多

Keyur Kayastha

SCM - Science graduate with extensive experience of more than 25 years in Logistics/Demand and Supply/EXIM/IDT/WH &…

1 Delivery time

Delivery time is the time it takes for your products to reach your customers from the moment they place an order. It is a critical factor that influences customer satisfaction, loyalty, and retention. You should measure the average delivery time, the delivery time variability, and the delivery time accuracy for each of your distribution channels and regions. You should also compare your delivery time with your competitors and industry benchmarks, and identify the causes of any delays or discrepancies.

添加您的观点

Keyur Kayastha

SCM - Science graduate with extensive experience of more than 25 years in Logistics/Demand and Supply/EXIM/IDT/WH & Supply Chain
举报内容
In my experience delivery time is very important as there continues scope Of improvement with help of new routes, network strategies, skilled and qualified business partners along with highly focused internal team. This will surely help to satisfy our valuable customers and bring more trust and loyalty on our Brand value. Important aspect of supply chain for retention of any customer.

已翻译

赞

2 Fill rate

Fill rate is the percentage of customer orders that are fulfilled from your available inventory without backorders or stockouts. It is a measure of how well you manage your inventory levels and demand forecasting. A high fill rate means that you can meet your customer expectations and avoid lost sales, while a low fill rate means that you have inventory shortages and customer dissatisfaction. You should measure the fill rate for each of your products, categories, and locations, and aim to balance it with your inventory carrying costs and service level.

添加您的观点

Keyur Kayastha

SCM - Science graduate with extensive experience of more than 25 years in Logistics/Demand and Supply/EXIM/IDT/WH & Supply Chain
举报内容
In my opinion, any supply chain manager is required to find out exact inventory turnover ratio, average inventory and economic order quantity along with inventory holding costs to increase order fill rate. One should try to achieve anything higher than 95%. Accurate demand and forecast will also help to serve customers.

已翻译

赞

3 Transportation cost

Transportation cost is the cost of moving your products from your suppliers to your warehouses, and from your warehouses to your customers. It is a major component of your total logistics cost and affects your profitability and competitiveness. You should measure the transportation cost per unit, per order, per mile, and per revenue, as well as the transportation cost as a percentage of sales. You should also analyze the factors that influence your transportation cost, such as fuel prices, carrier rates, shipment size, mode, distance, and frequency.

添加您的观点

Hélène de Taillac

Digital Marketing Manager chez Kardinal ??
举报内容
Last mile delivery is the final and most challenging stage of the transportation process. It is also the most costly and time-consuming part of the supply chain, accounting for up to 53% of the total transportation costs. Therefore, it's crucial for transportation companies to reduce expenses during this critical phase. Route optimization solutions offer an effective approach to fulfill this goal, as they calculate the best possible routes based on factors such as the type of goods to be delivered, available resources, and various constraints (e.g., time windows, necessary skills, maximum weight/volume limits, etc.).

已翻译

赞

4 On-time delivery

On-time delivery is the percentage of customer orders that are delivered within the agreed or expected time window. It is a measure of how reliable and consistent your distribution network is. A high on-time delivery rate means that you can keep your customer promises and build trust and reputation, while a low on-time delivery rate means that you have poor performance and customer complaints. You should measure the on-time delivery rate for each of your carriers, routes, and customers, and track the reasons for any late deliveries.

添加您的观点

5 Inventory turnover

Inventory turnover is the ratio of your cost of goods sold to your average inventory value. It is a measure of how efficiently and effectively you sell and replenish your inventory. A high inventory turnover means that you have high sales volume and low inventory holding, while a low inventory turnover means that you have low sales volume and high inventory holding. You should measure the inventory turnover for each of your products, categories, and locations, and adjust your inventory policies and strategies accordingly.

添加您的观点

6 Customer feedback

Customer feedback is the information that you collect from your customers about their satisfaction, preferences, expectations, and needs. It is a valuable source of insights that can help you improve your distribution network's performance and quality. You should measure the customer feedback using various methods, such as surveys, reviews, ratings, referrals, complaints, and loyalty programs. You should also analyze the customer feedback to identify the strengths and weaknesses of your distribution network, and implement actions to enhance your customer service and value proposition.

添加您的观点

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

添加您的观点

Transportation Management

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

How can you effectively measure your distribution network's performance?

1

2

3

4

5

6

7

1 Delivery time

2 Fill rate

3 Transportation cost

4 On-time delivery

5 Inventory turnover

6 Customer feedback

7 Here’s what else to consider

Transportation Management

给文章评分

感谢您的反馈

更多Transportation Management相关文章

更多相关阅读内容

How can you effectively measure your distribution network's performance?

1

2

3

4

5

6

7

1 Delivery time

2 Fill rate

3 Transportation cost

4 On-time delivery

5 Inventory turnover

6 Customer feedback

7 Here’s what else to consider

Transportation Management

给文章评分

感谢您的反馈

查看其他技能