Eight key indicators of the hottest supply chain m

2022-10-18
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Eight key indicators of supply chain management

when optimizing and innovating supply chain management, enterprises must first clarify the main business indicators under the new supply chain system in the future, so that the optimization and reform of supply chain have goals and directions, and achieve the limited life of some human tissues and organs, This paper summarizes eight key indicators of enterprise supply chain management:

(I) production and sales rate index

industrial product sales rate (production and sales rate) refers to the ratio of the total amount of products that industrial enterprises have sold to the total amount of industrial products available for sale in a certain period of time. It reflects the degree of sales of industrial products, that is, the degree of connection between production and sales. The higher this ratio is, the greater the degree that products meet the needs of social reality, Otherwise, it is small. The production and sales ratio of an enterprise's supply chain refers to the ratio of the number of products sold to the number of products produced at each node of the supply chain within a certain period of time

production and sales rate = the number of products sold at a node of the supply chain in a certain period/the number of products produced at that node of the supply chain in a certain period

this indicator can reflect the production and sales operation status of each node of the supply chain in a certain period, the effective utilization of supply chain resources (including people, finance, materials, information, etc.) and the inventory level of the supply chain. The closer the index value is to 1, the smaller the resource utilization and finished product inventory of the supply chain node

(II) production and demand rate index

production and demand rate is an index closely related to production and sales rate, which measures the overall operation of the supply chain system from another perspective. Production and demand rate refers to the ratio of the number of products (or services) produced by each node of the enterprise's supply chain to the demand of its downstream nodes (or users) for the product (or service) within a certain period of time, Namely:

production and demand rate index = the number of products (or services) produced by a node in a certain period of time/the number of downstream nodes' demand for the product (or service) in a certain period of time

this index reflects the supply-demand relationship between the nodes of the supply chain. The closer the production and demand rate is to 1, it indicates that the supply and demand relationship between the upstream and downstream nodes is coordinated, and the on-time delivery rate is high. On the contrary, it indicates that the on-time delivery rate between the upstream and downstream nodes is low or the comprehensive management level is low

according to the "barrel principle" in enterprise management, in the actual evaluation, we can select the shortest "wooden board" in the "barrel", that is, the production and demand rate of the node with the lowest production and demand rate, as the index value of the overall evaluation of the production and demand rate of the enterprise supply chain

(III) product production (or service) cycle index

supply chain product production (or service) cycle refers to the production rhythm or production interval of product production (or service) at each node of the supply chain. This index can reflect the response of each node to the demand of its downstream nodes. The shorter the cycle period, the better the rapid response of the node to its downstream nodes

in the actual evaluation, we can take the total value of the cycle period of each node or the index value of the node with the longest cycle period as the product production (or service) cycle period of the whole supply chain

(IV) total operating cost index of the supply chain

the total operating cost of the supply chain includes the communication cost of the supply chain, the inventory cost of each material, work in progress, finished products, and the total internal and external transportation cost of each node. It reflects the operational efficiency of the supply chain

(V) inventory turnover rate

inventory turnover rate refers to the ratio of the total amount (total quantity) of stock out in a certain period of time to the average amount (or quantity) of inventory in that period. It refers to the speed of inventory turnover in a certain period (one year or half a year). The two composites have anisotropic conductivity in the plane axial direction and transparent direction of graphene respectively. Improving inventory turnover has a positive effect on accelerating capital turnover, improving capital utilization and liquidity. The purpose of inventory turnover rate assessment is to plan and predict the cash flow of the whole company to some problems raised by the author from a financial point of view, so as to assess the demand and supply chain operation level of the whole company

the calculation formula of inventory turnover can be calculated by the following formula in actual evaluation:

inventory turnover = (used quantity/inventory quantity) × 100% used quantity is not equal to the issue quantity, because the issue quantity includes part of the standby quantity. In addition, there are also those that calculate the inventory turnover rate by amount. Similarly, the usage amount is not equal to the issue amount

inventory turnover = (usage amount/inventory amount) × Whether it is 100% used amount or inventory amount, when is the amount? Therefore, when specifying a certain period to study the amount, the following formula is needed:

inventory turnover = (total outbound amount in this period/average inventory amount in this period) × 100% = total issue amount in this period × 2/(opening inventory amount + closing inventory amount) × The calculation formula of 100% inventory turnover rate is (taking the monthly average inventory turnover rate as an example):

1, raw material inventory turnover rate = total cost of raw materials issued in the month/average inventory of raw materials

2, in-process inventory turnover rate = cost of finished materials received in the month/average in-process inventory

3 Finished product inventory turnover rate = monthly sales material cost/average inventory of finished products in stock

(VI) on time delivery rate index

on time delivery rate refers to the percentage of on-time delivery (or service) times of each node of the supply chain in its total delivery times within a certain period of time. The low on-time delivery rate indicates that the production (service) capacity of its cooperation and support cannot meet the requirements, or the organization and management capacity of the production (service) process cannot keep up with the requirements of the supply chain operation. On the contrary, it indicates that the production (service) capacity of the supply chain is strong. Now we are entering the final stage of product verification, and the production management level is high

(VII) cost profit ratio index

cost profit ratio refers to the percentage of net profit per unit product (service) of each node of the supply chain in the total cost per unit product (service). The higher the product (service) cost profit margin, the stronger the profitability of the supply chain and the higher the comprehensive management level of the enterprise

(VIII) product quality qualification rate index

product quality qualification rate refers to the percentage of the quantity of qualified products (services) provided by each node of the supply chain in the total output of products (services), which reflects the quality level of goods provided by the nodes of the supply chain. (end)

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