Preparing the BSC For Delivery
The advent of e-commerce has certainly propelled a lot more sales transactions, simply because buying and selling are now complete with just a few clicks Nangs Delivery your mouse. But with this comes the need to implement a better delivery system – not just for online stores, but for physical stores as well. Thus, there should be an efficient BSC for delivery system implemented, where BSC stands for the balanced scorecard.
The process of delivery is very much needed in attaining customer satisfaction. After all, how can a customer be satisfied with a product that never reaches him or her in the first place? Metrics should then be created and developed to measure the efficiency of the company’s delivery system. Whatever product or service a company offers, delivery metrics remain very important in its overall success.
And when it comes to developing the delivery BSC, there will always be the use of KPIs or Key Performance Indicators. KPIs are the expected outputs based on certain targets. These are the quantifiable figures that are used in measuring efficiency in terms of the achievement of goals – both short-term and long-term. To make things clear, let us say that a certain company aims to reduce its delivery time from 10 days to just 5 days in a single month. Of course, this target is backed by stats and figures so the target delivery time of just 5 days is already deemed feasible. To measure the company’s efficiency in that aspect, all the company has to do is check if they did meet the target of squeezing in all delivery schedules in just 5 days after one work month. The commonly used KPIs for delivery metrics include on-time pickups, inventory months of supply, transit time, on-time line accounts, defects per million opportunities, customer order promised cycle time, and claims percentage for freight costs. It is important for companies to use only the metrics that are applicable to their operations. Keep the number of metrics at a minimum as well.
The typical delivery system is composed of separate procedures. Equipment, packaging and delivery means, space and layout, delivery processes, number of employees involved, and skill levels are just some of the aspects that determine how effective a certain delivery system is. By glancing at the overall assessment figures, managers can then determine for themselves how efficient the system is. If the figures are off the target, however, then deeper assessment should then be done to determine the aspects that need improvement.