Fashion Supply chain’s KPI

Which are the KPIs you have to measure to improve your fashion supply chain’s management concretely? Let’s discover them below.

How complicated can be the management of your fashion supply chain?

There are many indicators that you need to monitor, such as order management control, the production lead time, and you need to make future forecasts for the new seasonal collections.

One key thing we need to consider is that “you can only improve what you measure”.

Many companies include the value of data collection and analytics, and fashion brands are also starting to take their first steps.

In fact, the right tools can give you everything you need to make the best decisions about your business and challenges.

So how can a company become more data driven?

How to make decisions about the data

1) Identify the most important data for you and your company

Ask yourself questions:

• Are you looking to increase your supply chain performance?
• Do you want to find ways to operate more sustainably?
• Do you want to know if it is better to change supplier?
• Do you want to understand how to eliminate delays? Example of delay due to lack of material, loading documents or payments from factories?

2) Rely on a complete dashboard

Thanks to an intuitive dashboard you will have your overview, your view from above of what is happening to your supply chain.

Monitor every step in real time with a simple click event in the most remote place in the world.

Six main metrics that allow you to understand and therefore better manage your supply chain.

6 KPIs you have to analyze and measure

In detail we have:

1. Confirmed PO: indicator of confirmed orders with lots of shipped and remaining to be shipped. This helps you to understand the percentage of material that is missing to be worked on;

2. Service level: percentage of orders shipped on time, to understand the punctuality of the material suppliers. In short, punctuality of your suppliers;

3. Production lead time: the time between placing the order and shipping: useful for understanding how long it takes;

4. Platform update: that is the platform update rate which is essential to understand the reliability of the above KPIs;

5. Call off: data available for those who use this mode and allows you to know how much of the pre-order has been used;

6. Claim manager: a very important indicator that signals disputes and the quantity involved, as as you know it is possible to manage the whole world of claims directly from the platform starting from the QR code which is the identity of the material.

With these KPIs you will be able to have the knowledge and therefore the control of the path of all your materials.

How can I trust these indicators?

These indicators are based on the fundamental element that guarantees the transparency of all this information: the QR code, the digital paper of each material that guarantees its uniqueness.

The activation of the QR code links any batch of material to a specific production order, entered by a specific manufacturer engaged with the brand.

In this way all the data generated are automatically recorded in the platform and linked to the “traceability of the material”.

Speaking of QR code traceability, to ensure that it is effective, it must be carried out by involving the material suppliers, the key players in the fashion supply chain.

Benefits you can obtain

In fact, if the first KPIs are able to give you a look from above, within our platform we can deepen the data of each individual material supplier.

Supplier KPIs allows you to have a more focused view on the various suppliers and their performance.

In addition to the four KPIs above, there is the addition of two traceability KPIs that allow you to see how much material has been traced within the collection.

Thanks to this data you will have the transparency to understand who your ideal partners actually are, which are the most reliable ones to entrust your new collection and that of the following seasons.

Not only that, you will easily adopt any corrective action (in real-time) to make your actors in the supply chain work immediately on specific issues according to a co-evolution policy.

Do you want to deepen and try our platform? Book a quick demo now!