Description of Specific Improvement Areas and Target

Specific Areas That Can Be Improved

Anticipating Demand

Improvements can be made to address demand forecasting to ascertain that stock-out and overstocking issues are addressed (Negri et al., 2021). Demand forecasting enables the company to predict the quantity of stock customers demand at a particular time. The metric is based on accuracy in determining customer patterns.

Unexpected Shipping Management

This can be improved by strengthening agility to respond to disruptions such as transport delays, which may affect the goods in transit to various destinations. Consumers react negatively to delays because lateness inconveniences various logistical issues (Negri et al., 2021). Extreme delays may result in the clients’ returning goods, negatively impacting the organization.

C) Consistency In Meeting Customer Expectations

Customer expectations must be met to ensure goods are consistently moving from the warehouse to consumers (Negri et al., 2021). This can be achieved by fulfilling customer requirements and increasing customer satisfaction with the company’s products. However, inconsistencies may result in issues about poor stock movement, thereby contributing to cases such as expiry.

Describing Targets to Focus on 

2. a) Demand forecasting should be improved to ensure accurate measurements that prevent overstocking and stock outing cases. Anticipated demand in the market usually determines how stock moves from the warehouse to consumer destinations (Negri et al., 2021). It explains why demand forecasting should be crucial in ensuring the products at the store are moving due to increased emphasis on targets.
3. b) The shipping process should be reduced by 15% based on time to cushion clients from delays (Negri et al., 2021). Ensuring goods arrive at customer destinations early gives room for increased sales and effective and efficient inventory management. It also leads to reliability because dispatching goods early shows some level of commitment.
4. c) The company should achieve a 98% on-time delivery to clients to align with the anticipation of clients (Negri et al., 2021). Clients feel that goods that align with their priorities should always come early, which builds a good rapport between the customer and the supply.

Selection of Industry Standard Metrics And Benchmarks

Anticipating Demand

The standard metric to be used in anticipating demand is the Forecast Accuracy, which facilitates the prediction of demand patterns necessary for the organization to avoid stock-outs and overstocking (Negri et al., 2021). This metric measures forecasted demand and actual demand. The benchmarks to be used in this case will be to measure the effectiveness of the demand forecasting tool to industry standards. This determines how effective the forecast accuracy is in predicting demand.

Unexpected Shipping Management

The metric to be used in this case is the on-time delivery rate, which measures the percentage of goods delivered to the customer within the stipulated time frame (Han et al., 2020). A high on-time delivery rate is an indication of the company’s efficiency in meeting deadlines about dispatching goods. Benchmarking involves comparing the industry standards of on-time delivery with company performance.

Consistency in meeting customer Expectations

The Customer Satisfaction Score is the metric used to measure client expectations, which measures the company’s interactions with its clients and how it meets their expectations (Negri et al., 2021). The Benchmarking metric measures the company’s performance against industry standards and customer feedback.

Time to Address the Gap

The time varies depending on the challenges associated with the targeted areas (Negri et al., 2021). However, addressing the gap will entail continuous improvement with a focus on corrective actions aimed at meeting the company’s expectations.

The Goals and Expectations of the Organization

Concerning anticipation of demand, the goal is to measure the accuracy of the demand forecast to ensure minimal cases of stock-outs and overstocking (Negri et al., 2021). Next, the unexpected shipping process is targeted to ensure timely delivery of goods to customers. Finally, in meeting customer expectations, the company intends to achieve high customer satisfaction.

Justification

The metrics selected align clearly with the organizational objectives concerning the management of warehouses. The metrics used can also be quantifiable and measurable, giving insights into areas for improvement (Han et al., 2020). Concerning benchmarking, the company can know where it is excelling and where improvements must be made thus improving performance.

References

Han, Y., Chong, W. K., & Li, D. (2020). A systematic literature review of the capabilities and performance metrics of supply chain resilience. International Journal of Production Research, 58(15), 4541–4566. https://doi.org/10.1080/00207543.2020.1785034

Negri, M., Cagno, E., Colicchia, C., & Sarkis, J. (2021). Integrating Sustainability and Resilience in the Supply chain: a Systematic Literature Review and a Research Agenda. Business Strategy and the Environment, 30(7).