Supply Chain Metrics to Know

In a good company system, there must be a complete work system. One of them is the Supply Chain Metrics or production supply chain measurement metrics. This system aims to determine and measure how the production process works.

The measurement of this metric itself includes everything related to producers, retailers, and distributors. The reason is that these three components are the important parts of the entire production chain and have a great impact on each other.

By applying this Supply Chain Metrics, the company is allowed to measure performance and the results could be communicated to the production management department. This evaluation will help the company to streamline all lines of the supply chain and support business direction and strategy.

Besides that, presentation in the form of important and tactical data about what will happen and how much risk the problem can be known from this metric. The existence of these metrics is closely related to supply chain management in which the entire production process is located.

However, the confusing thing from the supply chain is the number of metrics that can be applied. All of these metrics have differences in their application. Not all metrics are suitable in one production process.

So, what are the metrics that can be used to determine supply chain performance? Below are 4 of them:

The Ability of Inventory

The process of inventorying products or taking notes is actually something that many businesses have overlooked so far. Even though by involving inventory to measure a company's performance, it will help fulfill the desires of consumers.

For instance, controlling the supply of available products and how much supply is needed by consumers in the future. If the product is available, supply chain management will continue and the key lies in the ability to take notes.

Time Speed

This one metric is still closely related to inventory in which a good inventory process requires a speed. This is an important part because it takes a short time in the inventory process hence everything can run effectively. It is because the concern is the speed of the product supply chain.

The Satisfaction of Consumers

The easiest way to measure the success of a product produced by a manufacturing company is to look at the number of customer's satisfaction. This metric relates to the delivery of orders, the completeness, accuracy, and timeliness of the product to arrive at the customer's hands.

The concept of this metric is not limited to industries with Business to Customer (B2C) models but also to Business to Business (B2B) and other industries.

The Accuracy of Supplier

In fact, it is not only customers can be used as metrics, but the accuracy of suppliers at the end of the supply chain can also be measured to determine the success of the company. The indicators of supplier performance measurement are orders and purchases that are delivered in a complete, accurate, and timely manner.

That is all about the explanation of Supply Chain Metrics and examples that can be applied in manufacturing companies. To get a perfect measurement of the metrics, small things are needed regarding the existence of a warehouse that meets the standard.

If this one does not exist, it will be difficult to measure the performance of manufacturing companies. One of the areas that can be used to support the success of the production process is in Karawang New Industry City (KNIC).

Because the concept offered by KNIC is a world-class integrated industrial city so as to be able to present a world-class infrastructure to support the success of a company in producing their best products and maintaining the efficiency of the company's budget.

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