Optimising the supply chain is about earning money. A well-managed supply chain is the key to cost reduction, healthy profit margins and competitiveness. Optimisation is a constant challenge on many fronts. You need insight into how internal and external suppliers are performing, how productive people and machines are, whether agreed service levels are being attained and how reliably the warehouse is functioning. At the end of the day, you want to know how profitable a product group or a customer is.
Supply Chain Optimizer by Bmatix, a tool for performance monitoring based on SAP business intelligence, supplies those insights. Decision makers at strategic, tactical and operational level make the right choices thanks to apt reports and dashboards with drill-down functions.
Is the lead time of the purchasing process under control?
Shorter lead times enable you to improve your competitive advantage and your chances of more business. Delays in the purchasing process make themselves felt in the entire supply chain: they can compromise production planning and timely delivery to customers. The reporting gives insight into the lead time of the whole purchasing process, from enquiry to receipt of the goods.
SUPPLIER DELIVERY PERFORMANCE
How are your suppliers performing: are deliveries on time, in full and in accordance with the quality standard?
You measure and analyse the performance of external and internal suppliers for many reasons: you want to reduce costs, enhance product quality, improve customer service or boost your own rating as vendor. Are suppliers fulfilling the agreed service levels? Supply Chain Optimizer shows you the percentage of incoming goods that is delivered on time and in full (OTIF/on time in full and order fill rate). It also shows the result of the quality inspection, because poor quality affects lead times and profitability. You can spot negative trends in supplier delivery performance immediately.
Is the warehouse working accurately and quickly?
Warehouse managers want to handle the most products in the least time and with the highest possible service level. The way the warehouse functions influences, among others, customer satisfaction and stocking costs. If you want to measure its functioning, you need to have a good understanding of, for example, the product characteristics, such as turnover rate, value and specific safety of handling requirements. You use Supply Chain Optimizer to measure the service level and productivity of people and machines. That insight allows you to work with benchmarks: how are my warehouses performing compared to each other, competitors or sector benchmarks?
SALES & MARGIN REPORTING
How profitable is a product, product group or customer?
Optimised supply chains ensure better customer service, higher margins and higher sales figures.
With SAP CO-PA you can check the profitability, for example per product group, business unit or customer. Supply Chain Optimizer goes further than CO-PA. It includes, among others, the actual shipping costs in the sales and margin reporting. Moreover, it takes account of the evolution of the purchase price of goods, for that has a considerable impact on the margin.