Delivery Metrics - learn what your performance is

The End completes the beginning. Sales and distribution is the lifeline of all business. Even if the best product is rolled out, well packaged, smartly advertised and eagerly expected it means nothing unless there are good delivery systems in place. In business especially when products are targeted towards the end consumer, products reaching them on time and in the market they buy from is everything. If products don't reach on time due to faulty delivery systems the entire activity cycle before it is an exercise in futility. Hence the need for delivery metrics. Delivery metrics have been designed to help in measuring and controlling company delivery service and associated aspects. Delivery metrics help in measuring performance in manufacturing, warehouse and delivery from various viewpoints, including customer satisfaction and financial, giving the manager key performance indicators for supply chain business unit. The metric pack includes KPI [Key Performance Indicators] such as Defects per Million Opportunities, Inventory months of supply, Claims percentage for freight costs, On-time pickups, Transit time, On Time line account, Customer Order Promised Cycle Time. This helps in providing a flexible way in improving supply chain unit performance.

Metrics to the rescue. The metrics are available in MS Excel files. They are full of performance calculation formulas. These are formulated on the basis of extensive research done by involving experts from Transportation industry. The formulas in these metrics are for the purpose of improving one's business. The growth of delivery metrics is being powered by the IT industry. Internet technology has made companies keenly aware of IT infrastructure and how they relate to overall business goals. Studies show that in 2006 almost 60% of the Global 2000 companies were regularly monitoring their business delivery metrics. This was basically to improve their competitive advantage.

Rosy future for delivery metrics. Delivery metrics can also be used for content management as well. The programs come in either loosely coupled or completely decoupled management / delivery architecture while some companies bundle content management and delivery tightly within one package. Related metrics to delivery metrics are also being used increasingly. These would include Transportation, Inventory and Warehousing. Metrics help in increasing the efficiency of the distribution systems. They make them leaner, faster and more manageable. This results in products reaching the end consumer faster and with greater accuracy. Since the markets are becoming very competitive it is imperative for every organization to ensure they can compete with the best. Since organizations are increasingly becoming multi-national in operation delivery metrics guide them in building and ensuring efficient distribution systems. Some of the closed markets and even socialistic markets like India are becoming free markets. This means each brand in any product category will have to compete with several brands. A product will have to excel in every aspect but reaching the end consumer on time is also very important. More and more smart organizations are investing in delivery metrics. In the future delivery metrics will play an increasing role in shaping and guiding distribution systems in organizations.