Business Task:
AtliQ Mart is a growing FMCG manufacturer headquartered in Gujarat, India. It is currently operational in three cities Surat, Ahmedabad and Vadodara. The company is currently facing a problem where a few key customers did not extend their annual contracts due to service issues. It is speculated that some of the essential products were either not delivered on time or not delivered in full over a continued period, which could have resulted in bad customer service.
The Supply Chain team decided to use a standard approach to measure the service level in which they will measure ‘On-time delivery (OT) %’, ‘In-full delivery (IF) %’, and OnTime in full (OTIF) %’ of the customer orders daily basis against the target service level set for each customer.
Dashboard:
The comprehensive dashboard provides essential metrics to track and improve AtliQ Mart's service levels. It focuses on key performance indicators such as:
On-Time Delivery (OT) %: This metric measures the percentage of customer orders delivered on time as per the agreed-upon schedule. It is crucial for ensuring customer satisfaction and loyalty.
In Full Delivery (IF) %: The IF metric calculates the percentage of orders that were delivered complete, without any missing items. Achieving high IF% is vital in meeting customer demands and avoiding backorders.
On-Time In Full (OTIF) %: The OTIF metric combines both on-time delivery and in full delivery to give a holistic view of order fulfillment performance. It indicates how well the company is meeting customer expectations regarding timely and complete deliveries.
Volume Fill Rate (VFR) %: VFR measures the percentage of the total order volume that was fulfilled. It helps identify potential issues in supply chain efficiency and inventory management.
Line Fill Rate (LFR) %: The LFR metric assesses the percentage of individual product lines in an order that were delivered in full. This allows the company to pinpoint specific products or categories that may be causing delivery issues.
The dashboard is organized across two pages:
Page 1:
On the first page, metrics are categorized by cities and customers. This view enables the Supply Chain team to assess service levels on a regional and customer-specific basis. Identifying patterns and discrepancies across different locations and customers can help in tailoring solutions to address their specific needs.
Page 2:
The second page of the dashboard presents metrics categorized by products and categories. This view allows the team to drill down into the performance of individual products or product categories. Understanding which items face delivery challenges can guide inventory management and supply chain optimization efforts.
By utilizing this dashboard, AtliQ Mart can proactively monitor service level performance, identify areas for improvement, and take data-driven actions to address the service issues that may have caused some key customers not to extend their contracts. With a focus on continuous improvement, the company can strengthen customer relationships and enhance its position in the highly competitive FMCG market.
Data sets and challenge provided by codebasics.io
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