When you’re driving in a car, your passengers rarely argue about how fast you’re moving or how much gas is left.
This important information is communicated to everyone by a set of simple and accurate gauges on the dashboard. You should have an equally simple set of measurements for your company’s operations.
Here are some typical “dashboard” values that you should consider for measuring performance. These metrics should be communicated monthly to everyone in your company.
You will need detailed measurements within specific departments, but you should try to limit the number of these broadcasted measurements to three or four detailing the “big picture”.
Dashboard Metric Used For
- Order fill rate-------Overall customer service level, inventory management performance, warehouse and shipping performance
- Order Cycle Time ------ Order processing and shipping performance
- Shipping Accuracy ----- Warehouse Performance
- Reasons for Customer Returns ----- Customer Service Performance
- Inventory Accuracy ----- Inventory Management Performance
- Inventory Turns ---- Inventory Management Performance
- Stock-outs " Sales Lost -----Inventory Management Performance
- The general information you get from the management “dashboard” and customer surveys may identify a specific issue within your organization.
More commonly, though, these tools will point you to an areas of concern in which you must perform additional investigation.
If practical, create a more focused set of “dashboard” type measurements for the area of concern.
Rick Johnson, expert speaker, wholesale distribution’s “Leadership Strategist”, founder of CEO Strategist, LLC a firm that helps clients create and maintain competitive advantage. Need a speaker for your next event, E-mail rick@ceostrategist.com. Don’t forget to check out the Lead Wolf Series that can help you put more profit into your business.
