Triggers in Supply Chains
The impact of an unexpected event is measured in time and money above initial estimation.
Some common KPIs are ETA (Estimated Time of Arrival) and EAD (Expected Arrival Date).
For Suppliers is also important to check COGS (Cost of Goods Sold).
The example below describes some random but common events and their impact on a Multiple Supply Chain.
• W1 delivers with 10% less than contracted.
• The remaining quantity can be delivered only after 30 days.
• W2 orders the remaining quantity from a different supplier.
• The overall cost is with 3% higher because the quantity ordered is very small and was not planned in advance for cost optimization.
• W2 misses the planning for shipment over sea.
• The delivery date is postponed by 5 days.
• W3 misses the planned time for unloading the platform.
• The overall cost is with 0.01% higher because of the penalties. The delivery date is postponed by 1 day.
• W4 replace the 10% of manufactured goods received, because of their lower quality than expected.
• The overall cost is with 2% higher. The delivery date is postponed by 2 days because of the supplementary work.