Number of Days Latency in Demand Shaping/Management

Measure the lag time between a demand requirement and the date of fulfillment.

Why

Speed is often the biggest factor driving customer choice. Win business because of speed. This metric is increasingly important in many industries. DSC strategy will determine if this is important for your company.

How

Develop a measure of latency, track quarterly and move towards real-time tracking.

Net Promoter Score® for DSC

Measure the number of customers willing to recommend you as their supplier. A high score (9 or 10) is good, a low score needs to be improved.

Why

Digital Supply Chains should create customer loyalty. Customer loyalty means more revenue from existing and new customers. Net Promoter Score has been tracked by many companies but will be applied by the DSC because the DSC is focused on customer retention and growth.

How

Administer the Net Promoter Score survey to all customers and suppliers. Set the target for a score of 9 or 10. You may use the Net Promoter Score method or create your own version.

Talent - Output Metrics

Total DSC Talent Cost/ Percentage of Sales

Total salary and benefits costs of current and planned DSC. Calculate average pay now and compare to planned average pay.

Why

A DSC will require substantially lower people costs but average pay should increase.

How

Decide how outsourced people costs will be tracked. Include this in the calculation. Align goals for this metric with DSC Talent Strategy. DSC people costs (the total cost of people working the supply chain) divided into total sales.

Revenue Balance between Peak and Non-Peak Demand

Most companies have periods of high and low demand. The DSC will shift demand from peak periods to low periods. Acquire new people with skills in sales and big data analytics (e.g., data scientists) who can anticipate and shape demand through changes in availability, pricing, customization, etc.

Why

Shifting demand enables factories to operate efficiently and potentially eliminates the need for specific factories and excess inventory. Inventory can be reduced.

How

Create joint DSC/Marketing peak team to create a view of customer behavior and factory performance. Integrate big data for demand analytics.

Revenue Size of DSC Enabled Business Models Created

Calculate the annual revenue of a new business model created by the DSC. The single most important factor when developing new business models is to bring digital natives, marketing experts, and data scientists on board.

  • • A new business model could:
    • 1. Sell DSC services to other companies that need distribution or warehousing
    • 2. Be a “go direct” business that exists because the DSC includes sensors in products that trigger orders
    • 3. Give products away and sell content or services
    • 4. other

Why

Collecting new data from sensors, Internet of Things (IoT), social media and other sources will create new business opportunities for those who do it well. High-performing DSCs could become the most valuable asset of certain companies.

How

Bring people on board who can envision new ways of doing business. Invest in them and measure the results.

Revenue Increase per Supply Chain Employee due to DSC Actions

What

Measure the revenue increase per supply chain employee from DSC actions such as implementing new digital platforms, training of current employees, etc.

Why

To measure the actual impact and progress of these DSC actions into the transformation to the Digital Supply Chain. To measure the productivity per employee due to DSC transformation.

How

Make a list of all ongoing DSC actions which went through DSC transformation. Calculate the revenue increase due to the implementation of these DSC actions. Divide revenue increase by Number of employees. Talent - Process Metrics

Total FTEs of Data Scientists/Stewards

Calculate the total number of data scientists and data stewards in the DSC.

Why

Data scientists and data steward skills are in great demand as they are necessary for an effective DSC. The DSC Talent Strategy will spell out the number and skill set needed. Average data and systems literacy should also increase.

How

Calculate the number of data scientists and data stewards. Set a target for the number needed as well as for the overall skill base.

Total Headcount with Sales/Marketing Expertise

Count the people in the supply chain with at least 3 years of experience in sales, marketing, or customer service.

Why

Front end, sales drive skills, and mindset are needed to achieve the DSC. These new people will drive a mindset/culture change.

How

Quarterly survey with targets. Comparison with DSC Talent Strategy with performance targets.

 
Source
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