| Managing your supply chain is indeed an essential in | | | | well bring information overload for the management |
| any business setting. This is because if you can | | | | staff, which should be avoided because managers |
| manage your supply chain efficiently, then you can | | | | already have a lot to process to begin with. |
| enjoy a lot of advantages amongst the tough | | | | Bombarding them with all these data would just |
| competition pitted against your business. What's | | | | make things more complicated. Remember that less |
| more, with effective supply chain management, you | | | | is more when you are delving into the field of |
| can improve customer satisfaction because the | | | | metrics. This is according to Pareto's Principle, which |
| process ensures the fast and quality delivery of | | | | states that 80% of the benefits you enjoy from any |
| goods to your customers. Thus, it is very important | | | | process actually come from just 20% of the activity |
| to make sure all aspects of the supply chain are in | | | | as a whole. Thus, it is important to determine the |
| working order. The only way to do this is to | | | | appropriate metrics to use when measuring the |
| implement supply chain metrics. | | | | efficiency and performance of your supply chain. |
| Technological advancements have certainly paid off, | | | | You just may hear of scorecards containing as many |
| especially with the introduction of RFID tags. These | | | | as 20 to 30 metrics at a time. Yes, this is indeed |
| tags are actually used to track shipments and pallets | | | | common in a lot of companies all over the world. The |
| electronically. What's more, with the help of RFID | | | | sad thing here is that most of these companies do |
| tags, the management system of both stocks and | | | | not really know that the main reason why their |
| orders is made more efficient. These tags make it | | | | supply chain metrics are not fulfilling the very purpose |
| very easy to track individual shipments in just about | | | | they exist in the first place is the fact that they are |
| any part of the supply chain. Data is also maintained | | | | just too many in number. With these many metrics, |
| efficiently, especially when it pertains to serial codes, | | | | you can easily find the interpretation of a particular |
| quantity, description, and information on the product | | | | metric going against that of another metric. |
| itself. When you combine RFID data with the | | | | Having just the essentials for your supply chain |
| information you can get from barcodes, then you will | | | | metrics will definitely go a long, long way for you. If |
| have a lot of information at your hands. You may | | | | you are not too sure which particular metrics you |
| think this is a good thing when it comes to | | | | should include, do not worry. There are several |
| developing supply chain metrics, but it actually is not. | | | | websites that offer quality information that you can |
| Having all of these data and information will just add | | | | use. Also, there are templates that you can use. Just |
| to the extraneous variables in the equation. It would | | | | make sure to go with the metrics that are indeed |
| then be difficult to accurately measure what you | | | | relevant for your company. |
| intend to measure in the first place. This can very | | | | |