Managers always pay special attention to the issues of the efficiency of the MTS system: are materials purchased in the required quantities, are their prices not too high, is production provided with the necessary assortment? This prompts supply department managers to constantly write memos, compile all sorts of reports, and their quality is directly dependent on their quantity. The more of them, the less informative they are.
The first stage of creating a motivational KPI system involves defining supply functions and appointing persons responsible for them. The start of the logistics process begins with the registration of an application. The signal for the end of the cycle is a report on the delivery of the ordered goods to the customer's warehouses. The entire process can be divided into the following stages: procurement planning, supplier selection, contract conclusion, documentary support of goods, transport and warehouse operations. Each stage requires control and can be optimized. It is within the process that planning and analysis of KPI deviations occurs.
KPI for the Head of Supply Department
Unfortunately, domestic twitter database companies, when organizing material and technical supply, pay insufficient attention to the methods of conducting scientific analysis of indicators to develop the most optimal business model. In unstable conditions of market relations and with the ever-increasing role of innovative solutions in all areas of economic activity, process improvement is a necessary condition for achieving an economic effect. Consequently, regulation is needed at all stages of organizing control and analysis.
In relation to the supply organization process, the KPI operates with a set of 27 parameters. These indicators are distributed among the department employees. After the end of each reporting period, a total coefficient is calculated to evaluate the employee, taking into account the magnitude of deviations from the standards.
The main parameters of the supply system analysis include: the level of fulfillment of applications; inventory turnover; the quality of received raw materials, materials and other resources; reduction of internal costs for organizing the purchase, delivery and storage of goods. According to these main indicators, the work of each employee of the MTS department is most often assessed, thereby motivating them to achieve the set goals. The analysis of these parameters, in general, gives an objective assessment of the effectiveness of the entire process of material and technical supply. At the same time, the first indicator in the set is the most informative - the level of fulfillment of applications for provision. Therefore, it is always included in the focus group of employees.
In addition to the main ones, the KPI system includes a number of parameters applicable to a specific employee and characterizing his job functionality. Consequently, the KPI method allows you to build a transparent system aimed at increasing the motivation of each employee of the MTO department.