Looking to evaluate the efficiency of your supply chain? We can help! We’ve put together a list of questions to ask yourself to take a quick self-assessment of your current situation and maybe identify some areas where your supply chain might be underperforming.
1. How many of your deliveries are on time?
It’s one of the most important KPIs for any supply chain and one of the best ways to keep your customers happy: on-time deliveries. Do you know what your percentage is for on-time deliveries?
2.How much downtime is there?
Are you aware of how much time your shipments are losing because they’re stuck in a distribution center, on a truck not moving or not properly accounted for? Downtime in the supply chain can be a significant drain on resources.
3. How much visibility do you have into your logistics partners?
How efficient are they? What information are they sharing with you? Do they have a good reputation? Would you recommend them to others?
4. Do you have access to quality data?
What data do you have access to at any time? How accurate and effective is it to make future decisions? Is it real-time or is there a considerable delay?
5. Do you know how much your supply chain costs?
Many logistics managers don’t know the actual cost of their supply chain. Between shipping materials, logistics, compliance regulations, labor, and more, there are a number of things to consider to tie together a total cost.
6. Are you shipping internationally/globally?
If so, how does it impact your supply chain? Are you and your partners committed to doing everything possible to make sure your shipments aren’t sitting at Customs longer than they need to?
7. How does seasonality affect your supply chain?
Are you shipping more in one season or the other? Are you using the same packaging materials year-round or do you use different ones in Winter and Summer? Do your plans and preparations match the impact that seasonality has on your supply chain?
8. How many products are you losing?
How much revenue have you lost due to products that have been ruined within your supply chain? Why did this happen – Temperature? Humidity? Packaging?
9.What’s your customer feedback like?
What are you hearing from your customers? Are they satisfied? Are their products arriving on time, undamaged, in the correct order, etc?
These are just a few questions you could be asking yourself to assess the efficiency of your supply chain, but the list could go on and on. Supply chains are a complex ecosystem in which a lot could go wrong if you’re not prepared and asking the right questions!