High service levels is one of
the most important factors in improving supply chain performance. This
translates into more demanding and complex customer requirements and the need
for suppliers and logistics providers to meet those requirements.
In supply chains, service means accurate order fulfillment, few stock
outs, damage free handling and on-time deliveries.
When a project is undertaken to improve service
levels, the following points should be considered:
Balance – an effective supply chain strategy
balances the requirement for high service levels with cost. How can an
enterprise be sure that they have achieved the right balance?
Scorecards – there is a saying that "you can't
improve what you can't measure". A high performance system requires key
performance indicators, goals and an ongoing process for measuring
performance.
Cause
– there is another saying "you can't expect things to
improve without making changes". Problems tend to re-occur until the poor
practice that resulted in the problem is fixed. Root cause analysis is a
methodology that isolates the causes of recurring problems and allows
fundamental, long lasting improvements to be
implemented.
Solutions
If your supply chain depends on high service levels, but you may be paying
too much for this service, investigate these solutions from
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