羅技的績效指標(biāo)設(shè)計(jì)課件

NewBenchmarksandPerformanceMetricsforProgressiveAssetManagementGrayWilliams,VPWWSupplyChain-LogitechAnnePatterson,VPClientDelivery-WCTbidNewBenchmarksandPerformanceAgendaTheProblemStatement:TooMuchInventoryMyPrescriptionforInventoryHealthTargetedAssetManagementProcessesKeepingScore–MetricsTools&TechnologyReviewConclusions&RecommendationsAgendaTheProblemStatement:Logitech-OverviewPersonalInterfaceProductsOff-shorecontractmanufacturersSurfacetransportSupply-demandsynchronizationisaconstantchallengeNeedforcontinuousprocessofproactivelyidentifyinganddispositioningat-riskinventoryLogitech-OverviewPersTheProblemStatement:TooMuchInventorySupply-DemandSynchronizationCostpressure

ContractManufacturingOff-shoreproductionSurfacetransportationProductTurnoverFocusisonNPIReturnsOften10%ofoutboundormoreSlowprocessingthroughputAt-RiskInventoryCategories:ActiveProductsObsoleteProducts(FactoryNew)Returns(WhiteBox)D-Stock(Refurb)TheProblemStatement:TooMuMakingMattersWorse:PriceErosionMakingMattersWorse:PriceEKeepingInventoryMoving:

ProgressiveDispositioningStd.CostFullMargin507525100125150TimeNPIEOL…4-6months6-12months12+monthsStillfurthererosionwithnegativePPVFurthererosionwithreturns,freight,andcollectionsTypicalMarginErosionwithManualDispositioningDispositionexcessinventorywhereveritis-factory,DC’s,andchannelMinimizetheadministrativeandoperationalcostsofdispositioningStrictlyadheretocompetitivebiddingforfinishedgoodsandcomponentshortagesandexcessdispositioningEnsureacompleteaudittrailMovetoasystematicprocess:continuouslyidentifyanddispositionexcessasearlyinthecycleaspossibleInactiveExcessPre-obsoleteExcess(replacementdevelopedbutnotreleased)ChannelExcessObsoleteTargetMarginRecoveryKeepingInventoryMoving:

3StepstoInventoryHealth…TuneupyourInventoryPolicyCleardefinitionClearlycommunicatedLinkProductLifeCycletoInventoryPolicySetGoals%ofinventorybyagingcategoryMonitor

progress3StepstoInventoryHealth3StepstoInventoryHealth…TakeAction:ProgressivelyDispositionExcessInventory3StepstoInventoryHealthChannelIntranetAuctionSiteChannelIntranetAuctionSiteBrokerExtranetAuctionSiteBrokerExtranetAuctionSiteSiteManagementDashboardSiteManagementDashboard=PeriodCosts+PriceErosionFactor*(ExcessinDC+ExcessinChannel)ExcessIndex*:Onthebasisofcurrentexcessinventoryof$40M,theexcessindexiscalculatedasfollows:WhseCosts:$286kStdRevCosts:$400kE&OReserve:$400kCostofCapital:$300k$1,386k+1%*($40M+$30M)=$1,386k+$700k

Inotherwords,thecostofinactionthismonthis>$2M3StepstoInventoryHealth…DefineMetricsandMeasureSuccessActiveExcess*sampledata=PeriodCosts+PriceErosionExcessIndex:ACompositeofMetricsRevenue/RecoveryComponentThe

PriceErosionfactorDeltabetweensalesprice(@DistributorDiscount)andWCTMarketIntelligence(currentmarketprice).IndexconsistsoftheabovedeltacalculatedforthetopnSKU’swhichmakeup80%oftheexcess$forthecategory(linkto“ThePriceErosionFactor-Example”slideforreturnscostcomponents)Cost/CostAvoidanceComponentWhereisthisexcess?Channel:costofreturnMemphis:storageIndy:storage+3pservicesThecostofreturningchannelinventoryishigherthancostofholdinginventoryatMemphis.Thus,thelocationoftheinventoryisafactorintheexposurecalculation(linkto“ExcessIndex–CostComponent”slideforreturnscostcomponents)ExcessIndex:ACompositeofMThePriceErosionFactorDistributorListPrice(SKU1)n=1nDistributorListPrice(SKU1)-WCTbidMarketIntelligencePrice(SKU1)Example:LetussaythatofActiveInventoryattheUSDistributionCenter,12SKU’smakeup80%oftheinventory(atstandardcost).CalculatingthePriceErosionFactorusingtheaboveformulaforthose12itemswillgiveareasonableindicationofpriceerosion.ThePriceErosionFactorDistrExcessIndex–CostComponentCalculatetotalquarterlyreturncostperunitusingtheappropriatefactorssuchasthoselistedbelow.Dividethiscostbythenumberofunitsinthechannelpendingreturnforthequarter.Thisistheincreased

liabilityofexcesschannelinventoryandmustbeapartoftheExcessIndex.ReturnScrapRate(%-age)*COGS ReturnsTransactionCost TransportationCost(1Way) Re-WorkCost TotalCostofReturns(000,000) ExcessIndex–CostComponentCTheProgressiveDispositioningCycleWCTbidChannelIntranetAuctionWCTbidLiquidationAuctionScrap/Recycle

Routine(monthly)identificationofat-riskinventoryPostedtointranetchannelauctionsiteFinancedeterminesminimumpricingSalesforceproxybidsonbehalfofretailers

PrivateAuctionApprovedclose-outpartnersonlyCompetitivebiddingTotaloperationalsupportfromWCTbid

ControlleddestructionRecyclingCompliancereporting

TheProgressiveDispositioningTheProgressiveDispositioningCycleWCTbidLiquidationAuctionScrap/RecycleProgressiveDispositioningisaninterlockprocessensuring:Inventoryvisibility:onereal-timeviewforSales,Finance,SupplyChainBrandprotection:onlyapprovedliquidatorsAdministrativeStreamlining:overheadreductionControls:Sarbanes-Oxleytransactiontransparency,closedloopinventorytracking,audittrailMetricstodrivecontinuousimprovement

WCTbidChannelIntranetAuctionTheProgressiveDispositioningProductRecoveryManagement

CommercialEnd-Users,Distributors,andHouseholdEnd-UsersForwardSupplyChainReverseSupplyChainForwardSupplyChainReverseSupplyChainManufacturingDistributionCustomerOEM’s,3PL’s,4PL’sCM’s,ODM’sRefurbishRepairCollection:HouseholdCommercialChannelProductRe-saleTreatment,Recycling,DestructionComplianceReportingandAuditingProductRecoveryManagementWEEEExpandingtheScopeoftheServiceSupplyChainProductRecoveryManagement

CoConclusions&RecommendationsGoafterat-riskinventorybeforeitbecomesE&OMetricsmatterOutsourcetheprocessPrepareforproductrecoverymanagement–thesametoolsandprocessescanapply

Conclusions&RecommendationsGNewBenchmarksandPerformanceMetricsforProgressiveAssetManagementGrayWilliams,VPWWSupplyChain-LogitechAnnePatterson,VPClientDelivery-WCTbidNewBenchmarksandPerformanceAgendaTheProblemStatement:TooMuchInventoryMyPrescriptionforInventoryHealthTargetedAssetManagementProcessesKeepingScore–MetricsTools&TechnologyReviewConclusions&RecommendationsAgendaTheProblemStatement:Logitech-OverviewPersonalInterfaceProductsOff-shorecontractmanufacturersSurfacetransportSupply-demandsynchronizationisaconstantchallengeNeedforcontinuousprocessofproactivelyidentifyinganddispositioningat-riskinventoryLogitech-OverviewPersTheProblemStatement:TooMuchInventorySupply-DemandSynchronizationCostpressure

ContractManufacturingOff-shoreproductionSurfacetransportationProductTurnoverFocusisonNPIReturnsOften10%ofoutboundormoreSlowprocessingthroughputAt-RiskInventoryCategories:ActiveProductsObsoleteProducts(FactoryNew)Returns(WhiteBox)D-Stock(Refurb)TheProblemStatement:TooMuMakingMattersWorse:PriceErosionMakingMattersWorse:PriceEKeepingInventoryMoving:

ProgressiveDispositioningStd.CostFullMargin507525100125150TimeNPIEOL…4-6months6-12months12+monthsStillfurthererosionwithnegativePPVFurthererosionwithreturns,freight,andcollectionsTypicalMarginErosionwithManualDispositioningDispositionexcessinventorywhereveritis-factory,DC’s,andchannelMinimizetheadministrativeandoperationalcostsofdispositioningStrictlyadheretocompetitivebiddingforfinishedgoodsandcomponentshortagesandexcessdispositioningEnsureacompleteaudittrailMovetoasystematicprocess:continuouslyidentifyanddispositionexcessasearlyinthecycleaspossibleInactiveExcessPre-obsoleteExcess(replacementdevelopedbutnotreleased)ChannelExcessObsoleteTargetMarginRecoveryKeepingInventoryMoving:

3StepstoInventoryHealth…TuneupyourInventoryPolicyCleardefinitionClearlycommunicatedLinkProductLifeCycletoInventoryPolicySetGoals%ofinventorybyagingcategoryMonitor

progress3StepstoInventoryHealth3StepstoInventoryHealth…TakeAction:ProgressivelyDispositionExcessInventory3StepstoInventoryHealthChannelIntranetAuctionSiteChannelIntranetAuctionSiteBrokerExtranetAuctionSiteBrokerExtranetAuctionSiteSiteManagementDashboardSiteManagementDashboard=PeriodCosts+PriceErosionFactor*(ExcessinDC+ExcessinChannel)ExcessIndex*:Onthebasisofcurrentexcessinventoryof$40M,theexcessindexiscalculatedasfollows:WhseCosts:$286kStdRevCosts:$400kE&OReserve:$400kCostofCapital:$300k$1,386k+1%*($40M+$30M)=$1,386k+$700k

Inotherwords,thecostofinactionthismonthis>$2M3StepstoInventoryHealth…DefineMetricsandMeasureSuccessActiveExcess*sampledata=PeriodCosts+PriceErosionExcessIndex:ACompositeofMetricsRevenue/RecoveryComponentThe

PriceErosionfactorDeltabetweensalesprice(@DistributorDiscount)andWCTMarketIntelligence(currentmarketprice).IndexconsistsoftheabovedeltacalculatedforthetopnSKU’swhichmakeup80%oftheexcess$forthecategory(linkto“ThePriceErosionFactor-Example”slideforreturnscostcomponents)Cost/CostAvoidanceComponentWhereisthisexcess?Channel:costofreturnMemphis:storageIndy:storage+3pservicesThecostofreturningchannelinventoryishigherthancostofholdinginventoryatMemphis.Thus,thelocationoftheinventoryisafactorintheexposurecalculation(linkto“ExcessIndex–CostComponent”slideforreturnscostcomponents)ExcessIndex:ACompositeofMThePriceErosionFactorDistributorListPrice(SKU1)n=1nDistributorListPrice(SKU1)-WCTbidMarketIntelligencePrice(SKU1)Example:LetussaythatofActiveInventoryattheUSDistributionCenter,12SKU’smakeup80%oftheinventory(atstandardcost).CalculatingthePriceErosionFactorusingtheaboveformulaforthose12itemswillgiveareasonableindicationofpriceerosion.ThePriceErosionFactorDistrExcessIndex–CostComponentCalculatetotalquarterlyreturncostperunitusingtheappropriatefactorssuchasthoselistedbelow.Dividethiscostbythenumberofunitsinthechannelpendingreturnforthequarter.Thisistheincreased

liabilityofexcesschannelinventoryandmustbeapartoftheExcessIndex.ReturnScrapRate(%-age)*COGS ReturnsTransactionCost TransportationCost(1Way) Re-WorkCost TotalCostofReturns(000,000) ExcessIndex–CostComponentCTheProgressiveDispositioningCycleWCTbidChannelIntranetAuctionWCTbidLiquidationAuctionScrap/Recycle

Routine(monthly)identificationofat-riskinventoryPostedtointranetchannelauctionsiteFinancedeterminesminimumpricingSalesforceproxybidsonbehalfofretailers

PrivateAuctionApprovedclose-outpartnersonlyCompetitivebiddingTotaloperationalsupportfromWCTbid

Controlleddestructio