Sales creation: Your ability to sell and provide sales growth.If we consider at a basic level what contributes to this goal, we have: Using the objective we mentioned above, one of your company goals is to create a profit of £2m per year, increasing by 10% in the following years. This means you know exactly which metrics to track in order to find room for improvement. Once you’ve identified your company goals and objectives, you then need to work out what measures are influencing them. So, we need to consider what will affect this goal in order to understand what KPIs to use. In this case, a more realistic company goal may be to create a profit of £2m per year, increasing by 10% in the following years. Having an exceptionally high service level might gain you an excellent reputation, but if you have high operating costs to obtain it, it may be unsustainable in the long term. However, offering excellent service to customers as a key goal does not necessarily mean the company will be successful. Then, you can use these goals as a basis for your targets.įor example, many supply chain companies will have delivery on time in full (OTIF) as a principal KPI. These could be anything such as increasing your number of sales or improving your delivery times. Around two to four KPIs is usually a good amount to aim for. Less is usually more, and choosing a few key goals, instead of many small ones, will make the data much easier to track and keep on top of. The first step to identifying your KPIs is working out your true business goals. Or perhaps a set of specific KPIs may be identified that are directly linked to a company goal or objective, such as overall delivery performance, using OTIF (on time in full) data, or customer satisfaction. For example, financial information may be captured to understand return on investment or percentage growth in certain areas. Strategic measures may be based on a wide variety of areas. Customer-focused: Customer service and deliveryĪs strategic objectives are higher level, and therefore have a number of influencing factors, further drill-down is often necessary to identify areas for improvement and diagnostics.Warehouse processes: Efficiency and optimisation.
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