kpis are beyond 1,2,3,4!
TRANSCRIPT
KPIs ARE BEYOND
A BUSINESS CASE STUDY
Presented by Navaid Amir, ACSP, CSCP- Associate Director Supply Chain Jamjoom
Pharmaceuticals 1
Presented by Navaid Amir, ACSP, CSCP- Associate Director Supply Chain Jamjoom Pharmaceuticals 2
Presented by Navaid Amir, ACSP, CSCP- Associate Director Supply Chain Jamjoom Pharmaceuticals
CUSTOMER
MATERIALS PLANNING
PURCHASE PRODUCTION
WAREHOUSE & LOGISTIC
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To satisfy customer needs
through availability of high quality
products at the right price and at
lowest cost commensurate
Presented by Navaid Amir, ACSP, CSCP- Associate Director Supply Chain Jamjoom Pharmaceuticals
CUSTOMER
• Quickest availability at right price of high quality fresh product.
MATERIALS PLANNING
• Keep minimum inventory.
PURCHASE • Reduce material purchase cost.
PRODUCTION
• Reduce production cost.
WAREHOUSE
& LOGISTIC
• Reduce Transportation & storage cost.
• Higher FG stock to meet sales demand.
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5 Presented by Navaid Amir, ACSP, CSCP- Associate Director Supply Chain Jamjoom Pharmaceuticals
Presented by Navaid Amir, ACSP, CSCP- Associate Director Supply Chain Jamjoom Pharmaceuticals
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CUSTOMER
MATERIALS PLANNING
PURCHASE PRODUCTION
WAREHOUSE & LOGISTIC
Presented by Navaid Amir, ACSP, CSCP- Associate Director Supply Chain Jamjoom Pharmaceuticals 7
STRETIGIC MATRICS
Perfect order fulfillment
Order fulfillment cycle time
Supply Chain Flexibility
Supply Chain Adoptability
Supply Chain Management cost
Cost of Goods Sold
Cash to Cash Cycle time
Return on SCM Assets
Return on Working capital
RELIABILITY
RESPONSIVENESS
AGILITY
COST
ASSETS
ATTRIBUTE
CU
STO
MER
IM
PER
ATI
VES
SU
PP
LIER
IMP
ERA
TIV
ES
Presented by Navaid Amir, ACSP, CSCP- Associate Director Supply Chain Jamjoom Pharmaceuticals 8
POF% +/- 5% Order Qty & +/- 5 days Vs RDD 90%
DLT in Days Delivery Time from order date 10
SHELF LIFE Available shelf life to consume products. 90%
FORWARD COVER IN DAYS Inventory value/ Cost of sales 120
PPV (Favorable) Actual cost Vs Standard cost -3%
NPPV(favorable) Net purchase price gain Vs last year price. -2%
OPTIMIZATION OF BATCH SIZES Review of batch sizes in connection of growth in
production.
LOGISTIC COST AS % OF SALES Freight cost as % of sales revenue. 2.0%
SCM COST AS % OF SALES Total SCM cost as % of sales revenue. 1.0%
CU
STO
ER
IMP
ERA
TIV
ES
SUP
PLY
CH
AIN
IMP
ERA
TIV
ES
Presented by Navaid Amir, ACSP, CSCP- Associate Director Supply Chain Jamjoom
Pharmaceuticals
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KPI'S INDIVIDUAL OBJECTIVES
LOGISTIC PLANNING PROCUREMENT WAREHOUSE
CU
STO
MER
PER
SPEC
TIV
E CSL= > 98% Posting of Customer order on
same day of the receipt.
Issuance of production plan one week ahead of subsequent month. PO <= 3 days of PR receipt,
Legalization of document within 2 days of receipt of
invoice.
Agreed supply plan (ASP) by 1st week of every month.
POF=> 90%
Performa invoice within 2 days of receipt of order.
Custom clearance <= 7 days for air shipment and <= 15 days for by sea shipment.
Continuous review of available goods and creat Delivery order.
Daily massaging of production plan ensuring meeting customer orders.
OUTBOUND DLT<= 10 DAYS
Right First time documentation. Weekly schedule on every Wednesday
for subsequent week. FG dispatch/ invoice<= 2
days of DO receipt. WPS deviation < 5%.
SUP
PLY
CH
AIN
PR
ESP
ECTI
VE
SHELF LIFE > 90% Optimization of batch sizes.
FORWARD COVER< 120 DAYS.
Monthly review of slow moving items
and its disposition. Inbound OTIF> 75%
PPV > -3% Vs STD. New inventory policy should adhere ABC classification, reduction in no.
receipts.
Development of alternate sources of key materials.
NPPV > -2% Vs LAST YEAR
Shipment combination to reduce
freight and clearance cost.
Annual contract and review of prices viz-a-viz volume
growth.
LOGISTIC COST < 2% OF SALES
Freight cost<= 2% Vs last year. Local transportation cost
<=0.5% of sales.
SCM COST < 1.5% OF SALES
Expanses <= 95% of budget. Expanses <= 95% of budget. Expanses < 95% of budget. Expanses <=95% of budget.
Presented by Navaid Amir, ACSP, CSCP- Associate Director Supply Chain Jamjoom Pharmaceuticals
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INVENTORY & PURCHASE POLICY BASED ON ABC CLASSIFICATION, SHELF LIFE , BIN OCCUPANCY & SUPPLIERS LEAD TIME.
STANDARDIZATION OF FG SKU.
STANDARDIZATION OF PKG. MAT.
STANDARDIZATION OF SHIPPING DOCUMENTS.
CALL OF SYSTEM WITH KEY SUPPLIERS
REVISION OF PAYMENT TERMS
CHANGE OF SOS
SUPPLIERS EVALUATION BASED ON OTIF AND QUALITY.
CHANGE OF MODE OF SHIPMENT.
FTL/ FCL AND CONSOLIDATED SHIPMENT.
ZONE/ BATCH PICKING CONCEPTS.
CONCEPT OF RHYTHM CYCLE/ CAMPAIGN MANUFACTURING.
RATIONALIZATION OF BATCH SIZES.
DAILY MASSAGING OF PRODUCTION PLAN.
QUEST FOR EXCELLENCE
Presented by Navaid Amir, ACSP, CSCP- Associate Director Supply Chain Jamjoom Pharmaceuticals
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Excel based dash board
S.L %, 91 S.L %, 95 S.L %, 94 S.L %, 94 S.L %, 91 S.L %, 90 S.L %, 93
SALES %, 1.00
SALES %, 23.14
SALES %, 49.43
SALES %, 84.28
SALES %, 132.92
SALES %, 172.73
SALES %, 201.00
Lots % Inc., (0.6) Lots % Inc., 8.0
Lots % Inc., 23.2
Lots % Inc., 46.6
Lots % Inc., 66.6 Lots % Inc., 64.0 Lots % Inc., 71.0
In bound%, (20.1)
In bound%, 26.4
In bound%, 41.0
In bound%, 100.8 In bound%, 97.4
In bound%, 139.9
In bound%, 207.0
(50)
-
50
100
150
200
250
2008 2009 2010 2011 2012 2013 2014
Key Performance Indicators
Presented by Navaid Amir, ACSP, CSCP- Associate Director Supply Chain Jamjoom Pharmaceuticals
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Know your customer and what they value.
See holistic picture while setting KPIs.
Organize around flow of products- Including support functions.
Measure performance all the time as ‘If we can not measure we can not improve’.
Facts are always your friend, go to find facts.
Abandon fixed ideas- Out of box thinking.
Think of ways to make it possible.
Use your wits, not your wallet. Not all solutions needs financial investment.
Don’t stop seeking improvement- Sky is the limit.
Presented by Navaid Amir, ACSP, CSCP- Associate Director Supply Chain Jamjoom Pharmaceuticals
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Contacts: Navaid Amir (Associate Director, Supply Chain Management- Jamjoom Pharmaceuticals) [email protected] [Office] [email protected] [Personal] Mobile: +966569906418 Direct : +966(2)6081111;X131