Understand your efficiencies in your operations to enhance
productivity and hence returns
Any activity that increases sales or reduces costs will
raise productivity, but it is important you do this in a
systematic and sustainable manner.
What are the ways to increase productivity?
Labour productivity – employee training, target setting
Process productivity – review and streamline work processes
Technological productivity – automation, investment in machineries,
reducing man hours.
Product productivity – product innovations
Supply Chain measurements or metrics help you to
understand how your company is operating over a given
period of time.
Supply Chain measurements can cover many areas :
Procurement - leverage on vendor partnership,
analyze buying patterns to optimize purchases
Production - man-hours versus output; structuring
Inventory/Warehousing/ Distribution - cost
efficiencies in stock keeping and distribution
Transportation – efficiencies in route planning and
Customer Service – getting it right the FIRST time
Your Supply Chain is only as strong as its weakest link
to focus on the key metrics in each area of your Supply Chain.
Track your Metrics to view your performance over time, analyze
data to guide you on how to optimize your Supply Chain.
Benchmark with other companies in similar industry to understand
your strengths, gaps and opportunities.
Identify problem areas.
Measurements alone are not the solution to your weak
Take corrective actions to improve the gaps, often process or
Identify owners of each area of Supply Chain Measurements,
people or departments that are responsible for achieving an agreed
Monitor Progress and results of action plan, fine tune till desired
results is achieved
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