As customers demand and expect their products “anytime/anywhere,” companies are shifting focus to implementing best in class Order Management & Fulfillment software to compliment their ERP, WMS, and TMS systems.
As you can see from the Forrester study above, companies will be continuing to roll out OMS solutions from providers like Manhattan, IBM/Sterling, and Aptos at an even greater speed in the coming months. My fear is that similar to the large WMS and TMS implementations of the past 10 years, business intelligence may be an afterthought leading to limited order, inventory, store, and performance visibility for most companies.
These best in class OMS solutions are great at configuring and managing work flows with cutting edge algorithms. So the question now becomes, why not take full advantage of this great new system by leveraging the business and performance monitoring capabilities of business intelligence (dashboards, reporting, alerts, etc.)?
Working with a broad range of companies (retailers, distributors, etc.), below are common key metrics that can be visualized and tracked in real time with a little upfront business intelligence planning (as part of a order management implementation). I have categorized these metrics into three key focus areas (Order Delivery Performance, Order Mix, & Store & Inventory Metrics). These metrics become even more powerful with a full view of your enterprise wide data (inventory, handling and transportation costs) from your WMS, TMS, and ERP systems for one version of the truth.
Order Delivery Performance
- Average order lead times and duration of late orders (order aging)
- On-time delivery performance vs customer request time vs promise time
- % perfect order & fill rate (total/line/units/$)
- % orders shipped damaged free, with correct documentation
- Order cycle times (internal and total)
- % orders on time ready to ship
- Order breakdown by channel & product category
- % completely fulfilled by DC, % completely fulfilled by store, % mixed, etc
- % product line customized and/or personalized
- % of transactions for which available-to-promise (ATP) used
- % Peak Orders
- Backorders as a percent of total orders/lines/$/units
Store & Inventory Metrics
- Average per day store capacity in units/
- Average per day store utilization %
- Inventory in process vs. store demand
- Inventory demand/sales by store
- Daily units/$ received by store by product category
- Number and % of how an order was allocated and fulfilled – (i.e. went to store 1 and was cancelled there, went to store 2 and was cancelled there, finally fulfilled at store 3; number of hops).
This is by no means a comprehensive list, so please share some of the key metrics that you are tracking or plan to track as part of your OMS implementation.
Tim Judge is President & CEO of Agillitics, a supply chain business intelligence and analytics firm based in Atlanta, GA