Tag Archives: Enable

Financials Benchmarking

Supply Chain Benchmarking – an endlessly debatable topic. I wanted to share with you one way I like to use benchmarking, which is to frame a conversation with Supply Chain executive leadership around direction and distance of performance change required. My first pass at benchmarking years ago was for the CIO of HP, around IT cost as a percentage of revenue, to gauge whether IT budgets were in line with industry peers. We used one of the big-five consultancies, and 3 months and $400K later, we had the numbers, and had a great view of, by each tech market we were in, what level of tech spend was appropriate, and where budget changes may be mandated. I found the process very subjective, which it was, but valuable in the sense that it provided “bracketing” or bounding for what we should expect to set strategically. Continue reading

KPI Infrastructure

Some time ago I reviewed the KPIs of a group of clients, and what was fascinating was the range of time it took for them to gather only the most essential data – Perfect Order Reliability (OTIF), Order Cycle Time (OCT), Upside Flexibility (Lead Time), Total Supply Chain Cost to Serve (TSCCS), and Cash-to-Cash cycle time (C2C). One team took an hour to get the metrics, even to the detail of segmentation by major supply chains, and so on – it was more time to fill in a form than it was to gather the data (that’s telling you a little bit about form design too). They used standard metrics as part of their overall day-to-day supply chain management, and the infrastructure to report was real-time – for all metrics. Another team took a day. Continue reading