Managing supplier performance, service level and efficiency – with your ERP KPIs
At first glance, this is a really simple KPI in the Merchanter system – one of over 110 KPIs available in the system at last count. Useful in its own right, but invaluable when viewed in context.
It is a powerful metric which allows you, quickly and simply to assess the service you are getting from your suppliers, mitigate risks and find opportunities to enhance service levels.
The KPI itself simply tells you how many forward contracts are overdue at any moment in time. Overdue FCs are made instantly apparent as they are highlighted in red, making it very hard to miss them. When you click on it, you get a list of links to which contracts this applies to, and that’s where it gets really interesting.
You can then select a given supplier. On the supplier summary page you then get a very clear pictures of their ongoing service levels, as you can see in the screenshot below.
You can see at a glance how many POs are active, the average delivery time, which also highlights any late deliveries, as well as total and average order values in a given time frame. That enables quick assessment of the quality and value of service you receive from suppliers, giving you the information you may need to address any particular concerns or negotiate better terms.
The true value of applied data analysis
Having the information available is step one. Knowing what to do with it, what questions to ask and how to apply it to decision-making is where the real value lies. The decisions are all ultimately up to you, but the KPIs in Merchanter make sure you have the tools you need readily at hand to inform and validate those decisions – as well as measure their impact.