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Key Focus Areas for High-Performance Raw Material and Resource Management
Roger Knocker • Feb 06, 2024
Key Focus Areas for High-Performance Raw Material and Resource Management
1. Strategic Planning for Resource Optimization:
- Aligning raw material and resource management with overall business strategy.
- Identifying and forecasting raw material requirements based on market trends and production needs.
- Implementing risk management strategies for potential supply chain disruptions.
2. Operational Excellence in Material Handling:
- Streamlining procurement processes to reduce lead times.
- Implementing just-in-time inventory management to minimize holding costs.
- Ensuring accurate demand forecasting to prevent overstock or stockouts.
3. Technology Integration for Efficiency:
- Implementing advanced technology solutions for real-time tracking of inventory.
- Utilizing data analytics to optimize order quantities and reorder points.
- Integrating supply chain management systems for seamless coordination.
Here are some suggested Key Performance Indicators
- # On-Time Delivery Performance
- % Perfect Order Rate
- $ Inventory Turnover
- % Supplier On-Time Delivery Performance
- # Raw Material Cost as a Percentage of Revenue
- $ Logistics Cost per Unit Shipped
- % Forecast Accuracy
- # Stockouts per Month
- $ Cost of Goods Sold (COGS)
- % Lead Time Variability
- # Scrap Rate
- $ Days Sales of Inventory (DSI)
- % Supplier Lead Time
- # Order Cycle Time
- $ Raw Material Holding Cost
- % Order Fill Rate
- # Excess and Obsolete Inventory
- $ Capacity Utilization Rate
- % Demand Volatility
- # Supplier Quality Index (SQI)
Feel free to sign up for the KPI spreadsheet to access these and additional KPIs in a structured format that offers better context.
Watch the video below to see what you will get and how to use the KPI spreadsheet to take the guesswork out of KPIs
9 Steps to Master Successful Strategy Execution with KPIs - This piece is a detailed step by step guide on how to master strategic execution. Unlock the secrets to successful strategy execution with KPIs. Learn 9 essential steps to master effective strategic execution and achieve your goals. through actionable objectives.
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