How Should Your Business Measure Success?

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Measuring success

How Should Your Business Measure Success?

It is essential for large and small businesses to measure the success or failure of their operations because it is impossible to solve problems they can’t see or improve on successes they are unaware of. Knowledge and data are any company’s chief asset, and if you can gain some insight that others in your industry are overlooking, you might just have an opportunity to gain some serious traction over them. This definitely applies to manufacturing and supply chain management, as we will see in the following report and its applications.

MANUFACTURING AND SUPPLY CHAIN MANAGEMENT

According to a 2013 Next Generation Manufacturing study, about 45 percent of manufacturers that have reportedly excellent supply chain management say that they monitor and modify their supply chains on a regular basis. At least the top performers try to manage their supply chains. Companies with lower-rated supply chains are much less likely to check their efficiency than the companies that are currently outperforming them in this area. This can lead to problems down the road, preventing manufacturers from growing and reaching their potential. After all, supply chains are a key ingredient in obtaining the necessary parts to keep manufacturing processes running smoothly.

THE IMPORTANCE OF SUPPLY CHAINS

A supply chain is a string of suppliers, delivery experts, and others that a company depends on to obtain its parts and products to use and to sell to its own customers. In manufacturers’ case, they need a number of healthy supply chains to help them avoid disruptions in their production line. Failing to plan ahead for possible supply disruptions can lead to serious consequences, such as lapses in manufacturing schedules due to shortages or possibly even increased carrying costs, obsolescence, and spoilage because of ordering too many items at a time. For these and other reasons, it is important for manufacturers to stay on top of their supply chain management.

MEASURING SUPPLY CHAIN PERFORMANCE

Manufacturers that take the time to measure their supply chains’ performance can often judge when they are about to face difficulties and what are the best ways that they can overcome them. For example, if a manufacturer notices that one of its suppliers is having trouble delivering parts on time, it could contact that supplier to identify and fix the problem, or it could go through a different supplier to get those parts. Either way, the manufacturer solves a potentially serious problem because it was paying attention and was able to act from a strong position because it had cultivated other options instead of solely relying on the way it has always done things.

USING MANUFACTURING INVENTORY SOFTWARE

Manufacturers should use manufacturing inventory software to strengthen their supply chains. Fishbowl Manufacturing gives manufacturers the resources they need to balance their inventory levels, optimize the organization and setup of their warehouses, and make their manufacturing processes more efficient. All of this is designed to keep costs down and help businesses succeed. Keep your supply chains running at the optimum level for your company’s needs with the help of Fishbowl Manufacturing!

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TL;DR SUMMARY

According to a study, manufacturers with excellent supply chains frequently measure their performance and make changes when necessary. To prevent supply chain disruptions and other problems, businesses should monitor vendor performance and make sure their orders are coming in accurately and at the right times.

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