Supply-Chain Supercharger: KPIs and Distribution

The itelligence supply-chain benchmarking survey is rolling along nicely. As we continue to receive one valuable response after another, let’s take this opportunity to hone in on the role that key performance indicators (KPIs) play in benchmarking.

Without a speedometer, a driver would never know for sure how fast the car is going. Without KPIs, an executive can only guess how well the organization is performing. Our last post talked generally about how KPIs allowed West Chester Holdings Inc. to put its foot on the accelerator. A closer look at West Chester, a wholesale distributor of gloves and protective clothing, will show exactly how itelligence helped the company boost performance and leave its competition in the rearview.

Before partnering with itelligence, West Chester was slowed down by a number of challenges, including:
• Poor integration between warehouse and inventory control
• Insufficient inventory visibility and uncertain back-order status
• Manual, paper-based processes that did not scale to 600-per-day order volume
• Legacy proprietary hardware

West Chester chose itelligence because of the strength of it.wholesale, a qualified SAP® Business All-in-One partner solution. itelligence fine-tuned the out-of-the-box solution in only 15 weeks, so West Chester was out of the gate at top speed.

The result at the finish line? There were plenty of qualitative benefits, like the ability to make better decisions based on improved data and analytics—not to mention the boost that West Chester saw in supply-chain relations, courtesy of a new vendor portal. But, for the gritty details, let’s take a closer look at the KPIs. Following the implementation of it.wholesale, West Chester experienced a:

• 14 percent increase in warehouse space availability
• 24 percent increase in sales growth without adding staff
• 3 day decrease in days sales outstanding
• 40 percent decrease in write-offs related to inventory adjustments
• Minimum 10 percent decrease in time spent by sales on administrative tasks
• 96 to 98 percent fill rate due to close monitoring and visibility

That’s the beauty of using KPIs to gauge the power of automated solutions from itelligence: the software is your vehicle, and the KPIs are your speedometer, telling you exactly how fast your company is doing laps. KPIs also give you the ability to continuously clock your speed against the rest of the track, to make sure that you are keeping pace.

If you haven’t already, you can take the itelligence supply-chain benchmarking survey right now by clicking here. As soon as we compile the results, you’ll receive a free report documenting how your supply-chain operations fare in the race against your peers.

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