Your business may just be beginning to track this metric, perform this business function or identified this as a problem. Improved execution in this area should be a high priority.
Your business is competitive in this area, but there’s still room for advancement. Consider investments to improve related operations to achieve better results.
Your performance in this area is considered best in class and is superior to the average company in your sector. You’ve laid a solid foundation in this business function, and the next step is optimization.
You’re achieving the optimal results for this metric. Your business processes in this area are highly efficient and stand out against competitors. Keep investing in this area to maintain these results.
Fill Rate
Fill rate represents the percentage of your orders that can be satisfied immediately by inventory available in your factory. This metric is essential to providing exceptional service to your customers and maintaining positive customer relationships. However, increased customer satisfaction must be balanced against the cost of maintaining higher levels of inventory. Having access to real-time inventory data can significantly impact your company’s ability to maintain proper inventory levels and achieve an optimal fill rate.
Manufacturers accounted for half of the $150.8 billion investment in analytics.”
Source: IDC
Cycle Time
A fast cycle time is critically important to manufacturers in an era where 2-day deliveries have become the normal customer expectation. Cycle time and lead time are frequently confused. Cycle time represents the time it takes from the start of production to when an order is complete, while lead time starts at the time the order is placed by the customer and ends when the order is delivered. Therefore, reducing cycle time allows for a shorter lead time, thus increasing customer satisfaction.
Inventory Turnover
Inventory turnover reveals how fast products are moving out of the factory and creating cash flow. Inventory turnover for manufacturing companies vary greatly depending on the type of product sold (perishable v. non-perishable, hard v. soft goods, etc.), and as seasonal demand changes. Another important component to consider when defining inventory turnover goals is the gross margin on the sale of your manufactured products. Lower margin items require higher stock turnover to meet revenue targets. A higher ratio indicates that money is changing hands and funds are not tied up in products with little demand or low sales.
Order Cycle
Time
> 96 days
84 days
54 days
< 24 days
Order Cycle
Time
eCommerce
Growth
< 12%
12%
14%
16.3%
eCommerce
Growth
Revenue
Growth
< 3%
9.2%
15.7%
22.1%
Revenue
Growth
Days Sales
Outstanding
101 days
69 days
57 days
45 days
Days Sales
Outstanding
Inventory
Turnover
< 3 turns
6 turns
7 turns
11 turns
Inventory
Turnover
Fill Rate
< 97%
97%
97.8%
98.5%
Fill Rate
Customer Service
Responsiveness
> 1 day
> 8 hours
< 5 hours
Real-time
Customer Service
Responsiveness
Time to Close
Books
> 10 days
7 days
3 days
< 3 days
Time to Close
Books
Total IT Spend
as a % of
Revenue
> 2%
1.7%
1.3%
0.8%
Total IT Spend
as a % of
Revenue
Source(s): Finlistics
Your business may just be beginning to track this metric, perform this business function or identified this as a problem. Improved execution in this area should be a high priority.
Your business is competitive in this area, but there’s still room for advancement. Consider investments to improve related operations to achieve better results.
Your performance in this area is considered best in class and is superior to the average company in your sector. You’ve laid a solid foundation in this business function, and the next step is optimization.
You’re achieving the optimal results for this metric. Your business processes in this area are highly efficient and stand out against competitors. Keep investing in this area to maintain these results.
