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- Total Cost: Total expenses incurred (direct and indirect costs), at a certain point in time.
- Total Cost of Goods Sold (COGS): Total cost of goods sold amount, at a certain point in time. COGS is the main part of the total business expenses.
- Total Distribution Costs: Distribution costs (also known as “Distribution Expenses”) are the costs incurred to deliver the product from the production unit to the end user.
- Perfect Order Rate – measures how many orders are shipped without incident, where incidents are damaged goods, inaccurate orders or late shipments.
- Back Order Rate – measures how many orders cannot be filled at the time a customer places them. A high back order rate means your customers are forced to wait while you attempt to fill their order, which will adversely affect customer satisfaction and retention in the long term.
- On-time Customer Order Delivery Rate – Calculated as the number of Orders delivered on or before the Requested Deliver Date versus the total number of Orders.
- On-time Customer Order Shipping Rate – Calculated as the number of Orders shipped on or before the Requested Shipping Date versus the total number of Orders.
- Capacity utilization Rate – Is the extent to which an enterprise actually uses its installed productive capacity. It is the relationship between output that is actually produced with the installed equipment, and the potential output which could be produced with it, if capacity was fully used. Calculated as Actual output divided by the Potential Output.
- Cycle time: Cash Conversion – The cash conversion cycle (CCC) expresses the length of time, in days, that it takes for a company to convert resource inputs into cash flows. It is calculated by adding Days Inventory Outstanding (DIO) & Days Sales Outstanding (DSO) and deducting the Days Payable Outstanding (DPO).
- Cycle time: Fill Rate / Demand Satisfaction Rate – Percentage of customer or consumption orders satisfied from stock at hand, in comparison to the Organization’s service level agreement. It is a measure of an inventory’s ability to meet demand.
- SLA Adherence: Distribution Expense Ratio – Relationship between the Distribution Costs (Expenses) and Total Revenue.
- Customer Reject Rate – The number of completed units returned by customers divided by each one million units shipped, including parts reworked by customers, as a percentage.
- First pass yield (FPY) – Also, known as throughput yield (TPY), is defined as the number of units coming out of a process divided by the number of units going into that process over a specified period of time. Only good units with no rework or scrap are counted as coming out of an individual process.
EzDataMunch is specialized in providing Analytics and Data Science capabilities for Retail Industry. To know more about our Retail Industry capabilities, please visit: https://ezdatamunch.com/industry-solutions/retail/
Chief Operating Officer
Jagan, a Project Management Professional (PMP) and Six-Sigma Green Belt Certified Professional, has more than 20 years of experience in leading teams, and providing process improvement ideas to Business users. His business acumen and strong expertise in understanding the processes helped the Clients with significant productivity and cost savings over the years. Currently, Jagan is working on providing Business Intelligence solutions, that enables the Clients for better decision-making, and building efficiency in the overall process.