Benchmarking, Performance Metrics, and Organizational Analysis

Measure Supply Chain Logistics Performance – Establish KPIs

OPSdesign's benchmarking, Key Performance Metrics (KPIs), and organizational analysis studies help identify your Operations Performance Gap (OPG)™ - the delta between current supply chain metrics, those of your competitors, or those that are economically possible to achieve. The OPG Index™ is a concise indicator of the health of your supply chain organization and provides the critical diagnostic information and dashboard visibility needed to optimize performance.

As part of the OPSdesign Continuous Improvement Methodology™, benchmarking, Key Performance Metrics (KPIs), and organizational analysis studies are an integral service offering. In order to effectively “Analyze, Anticipate, Act, Assess, and Adjust™” to a changing business landscape, reliable baseline data regarding minimum and best industry/market channel practices must be aggregated and considered.

Whether a forensic effort aimed at improving underperforming warehousing, distribution, or e-commerce fulfillment operations, or as part of a holistic design of supply chain processes, systems, infrastructure, and labor alternatives, OPSdesign is prepared to help you achieve your mission-critical goals. The following illustrates some of the many Key Performance Indicators (KPIs) we can examine and define:

  • On time shipments
  • Order Cycle Time
  • Perfect Order Index
  • Lost sales – Stock Out Percentage
  • Backorders as a % of total orders
  • Backorders as a % of total lines
  • Backorders as a % of total dollars/units
  • Dock to Stock Cycle Time Hours
  • Lines Received and Put Away per Hour
  • % of supplier orders received with correct documents
  • % of supplier orders received damage free
  • On time receipts from supplier
  • Fill Rate - Line
  • Fill Rate - Order
  • Lines Picked/Shipped Per Hour
  • Orders Picked/Shipped Per Hour
  • Cases Picked/Shipped Per Hour
  • Pallets Picked/Shipped Per Hour
  • Distribution costs as a % of Sales
  • Distribution Costs as a Percentage of COGS
  • Distribution Costs Per Unit Shipped
  • Days on Hand Raw Materials Inventory
  • Days on Hand Finished Goods Inventory
  • Inventory shrinkage as a % of Total Inventory
  • Average/Peak Warehouse Capacity Used
  • Honeycombing %
  • Inventory Accuracy by Dollars/Units
  • Inventory Accuracy by Location
  • Order picking Accuracy Percent/Order
  • Annual Direct Labor Turnover % by Role/Dept.
  • Productive Hours to Total Hours
  • Percent of Orders with On-Time Delivery
  • Percent of Orders Shipped Complete
  • Percent of Orders Shipped Damaged Free
  • Percent of Orders Shipped with Correct Documentation
  • Inventory Days of Supply

As a result of these benchmarking, performance metrics (KPIs), and organizational analysis initiatives, a game plan can be developed to close the Operations Performance Gap and help “achieve strategic advantage and tactical superiorit”.