Competition has always been fierce within the modern-day supply chain, but it is now more vital than ever to set your company apart from competitors. So how does a modern-day supply chain team effectively demonstrate value and performance? Demonstrating value by measurable performance relies on automated logistics, focused supply chain KPIs, and fine-tuned financial metrics. All of these elements come together with a clear purpose when you maintain the proper focus.
Think About the Possible Costs and Impact to the Customer Experience
Customers drive the market. When their wants and needs are not delivered to the standard they would like, they are likely to go elsewhere. Many things can impact customer experience and affect how they view a particular company or service. Here are a few:
- Late deliveries — customers want fast shipping that is reliable and affordable.
- Lost goods — orders not arriving at all have a greater negative impact than late deliveries.
- Damaged goods — consumers want their orders treated with respect.
- Higher fees and rates — excessive fees and add-on charges are a turn-off.
Improved transportation optimization and automation can greatly affect costs and expenses associated with fulfilling customer needs and demands.
Helping Supply Chain Leaders Elevate Their Role Through Financial Measurements, Data, and Analytics
Focus on the Metrics
Several essential supply chain KPIs and metrics can provide supply chain managers with the data they need to communicate network value to executive leaders effectively. Such as:
- Financial indicators and ROI trends within the market.
- Accrual reporting for short- and long-term goals.
- Shipping timelines and delivery statistics, including accuracy and corrections in general ledger coding.
- Delivery tracking and real-time updates.
- Automated ordering and restocking protocols.
- Real-time updates throughout the supply chain network.
Custom metrics and tailored KPIs can also provide additional insight for specific markets and services and add additional value for network managers and leaders.
Prioritize Better Inventory Replenishment
Innovations have forever changed the face of the global supply chain, beginning with the very way inventory is managed and controlled. According to Inbound Logistics, leading practices in technology and automation have significantly impacted how supply chains today approach inventory demand and supply planning. Companies utilizing advanced analytics, intelligent data integration, real-time communications, and custom inventory management systems have fared the best. Those who can grow and adapt have adjusted to changes in production trends, inventory management, and logistics.
Capture and Use Real-Time Data to Benchmark Against the Current Market.
Internal performance metrics no longer can use last year’s data to get an accurate picture when comparing against current performance metrics because the markets are vastly different. New standards, new parameters, and exceptions must be established to benchmark accurately in today’s market. Managers can use shipping data and actionable insights to improve business decisions and present their standing with investors, executives, and consumers alike. Utilizing real-time data and analytics can help enterprise shippers highlight real-world events where the use of technology and supply chain expertise came through.
Focus on the Changing State of Shipping and How Your Team Can Leverage Data to Stay Strategic Through Negotiations and More
Several recent developments give shippers hope that the market may be turning around. For example, UPS and FedEx are beginning to honor guaranteed service refunds (GSR). Knowing these additional changes to services, transportation rates and fees, in addition to the continual shift toward greater sustainability, can help shippers stay strategic with their negotiations and contract discussions. Shipping has forever changed. Survival and growth remain dependent on adapting, adjusting, and evolving along with these new trends.
Increase Shipping Value With the Right Auditing and Analytics Partner
The changes that have occurred within the supply chain network over the past 36 months have been unprecedented. Significant disruptions and changes in the markets may make it difficult for supply chain managers to demonstrate their strength and value to executives and investors. When trends deviate from the norm, and sudden shifts and changes occur, it can be challenging for companies to adapt and stay focused.
Teaming up with a professional and experienced auditing and analytics services provider, as well as leveraging innovative shipping technology, can make all the difference when it comes to driving home the value of the service supply chain where it matters most: in the boardroom and the bottom line.
Learn more about how your team can improve efficiency and get the most from your solutions by registering for our upcoming webinar, titled “Helping Supply Chain Leaders Elevate Their Role Through Financial Measurements, Data, and Analytics,” by clicking the button below. And if you are ready to get started with a world-class shipping data analytics solution, connect with Intelligent Audit today!