Supply chain KPIs: The 10 metrics that matter most for your business
Supply chain KPIs are metrics that show how well your operations are running. Learn the 10 most important ones and how to start tracking them.
Kick off strategic supply chain processes like raw materials planning, financial planning, and manufacturing.
Avoid disappointing customers and missing potential sales, and keep warehousing costs and inventory write-offs to a minimum.
Global supply chain interruptions can lead to increased operational costs and administrative costs, as well as quality risks when hastily sourcing new suppliers.
Turn supply chain complexity into operational clarity. Sage Supply Chain Intelligence integrates with Sage 100 and Sage X3 to give you real-time visibility from purchase order creation through delivery—helping you reduce delays, prevent costly stockouts, and collaborate better with suppliers.
"With Sage we can quickly identify cost anomalies, trends, or potential issues with a warehouse or vendor before it's too late to take corrective action."
Dean Beck, VP & CFO
HJS Packaging & Distribution
"We needed to do everything better — financial reporting, AP processing, inventory control, procurement, and supply chain management. QuickBooks wasn't cutting it so we made the move to Sage 300."
Carrie Magee, VP of Finance
Ignite International Brand Ltd.
"Improved sales forecasting, combined with our ability to monitor what customers have on their shelves, allows us to maximize revenue and optimize deliveries."
Jeremy Myrick, IT Manager
Skagit Horticulture
Supply chain management is the backbone that keeps businesses running smoothly and efficiently. It includes all the activities involved in the flow of goods, services, information, and finances from the initial procurement of raw materials to the final delivery of products to the end customer. It is about managing the entire journey of a product, from its creation to its consumption. Effective supply chain management ensures all the different parts of the supply chain work together seamlessly, optimizing performance, minimizing costs, and ultimately delivering value to customers. This includes sourcing materials, manufacturing, transportation, warehousing, and distribution.
There are various types of supply chain management (SCM) software available on the market. The choice of software depends on the specific needs and requirements of a business. Many solutions include demand planning, inventory management, procurement, and warehouse management.
Some offerings include global, cloud-based SCM software that helps businesses optimize their end-to-end supply chain design, planning, and manufacturing. Many offer features such as inventory management, demand planning, and transportation management. Some SCM software provides real-time visibility into inventory, demand, and supply, allowing companies to make more informed decisions.
Other solutions use artificial intelligence (AI) and machine learning (ML) to enable better demand forecasting, inventory optimization, and delivery route planning. Choosing SCM software that enhances visibility, collaboration, and efficiency across the supply chain is essential.
Sage offers Sage X3, which helps you keep up with demand and ensure optimal efficiency through real-time monitoring of inventory status.
Supply chain management (SCM) is not a type of enterprise resource planning (ERP). However, ERP systems often include modules for supply chain management. ERP software is an integrated suite of applications that allows businesses to manage and automate various operations, including supply chain management. It provides functionality for managing financials, inventory, procurement, manufacturing, and other business processes. SCM is a subset of ERP and focuses specifically on the management of the supply chain, including logistics, procurement, inventory, and demand planning. Sage X3 is an example of ERP software that includes supply chain management features.
The supply chain and logistics are closely related, but they have distinct differences in focus and scope. The supply chain encompasses the overall process of sourcing, processing, and delivering goods to the end customer, while logistics specifically deals with the movement and storage of goods between different organizations within the supply chain.
AI's ability to work with sparse data, integrate disparate sources, continual learning, and accessibility through cloud services makes it a powerful tool to drive supply chain efficiencies and insights for small to mid-sized companies who many not have large data volumes initially.
AI can help integrate data from multiple sources - even sparse datasets from suppliers, logistics providers, and sales. By consolidating and analyzing this distributed data intelligently, AI can extract valuable insights for predictions and prescriptive recommendations that may not be apparent through traditional methods such as business intelligence.
Supply chain KPIs are metrics that show how well your operations are running. Learn the 10 most important ones and how to start tracking them.
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