Cost & Performance Visibility

[Semi]

I reckon one of the hardest things today in Supply Chain management, is to get real visibility of cost and performance! With stuff like factory gate pricing, cost to serve and the general push to streamline operations, it seems like cost and performance visibilty is even more important.

Now the big but! Does anyone do this really well? Are there simple approaches that can be taken? Does it require huge IT investment? If so, does it prove worthwhile? Does this keep you awake at night LOL :-)

[1970]

I know what you mean. The ability to have a kind of 'dash board' with all the key Supply Chain costs and performance. I have not seen that anywhere.

It's probably because ERP systems are not designed to report that way :-(

[WMS]

Originally Posted by Semi

Now the big but! Does anyone do this really well? Are there simple approaches that can be taken? Does it require huge IT investment? If so, does it prove worthwhile? Does this keep you awake at night LOL :-)

I have not seen any companies that can do this easily or cheaply. Have yet to see an ERP sysem that can do it well! It usually required additional reporting software and that comes at a price. Could be US$250 k to put in and then hefty support fees.

[Neo]

Old thread but good question .Such cost need to be analysed and monitored monthly against actual sales based on activity period .Normally any cost that deviates from budgeted figures need to be investigated and justified .Such cost can be compile manually based on billing invoices but this work is going to be heavy .The only way to simplify this job is to categorise the type of cost that need to be monitored and control .

Example :

1. Storage Charges
2. Handling Charges
3. Inland Delivery Charges
4. Freight Cost
5. Documentation and forwarding charges
6. Packing Materials If any
7. Etc

[Loggie]

Very few ERP systems do this well. Generally needs a bolt on reporting system. I have never seen it done well though.