AN EXAMPLE OF USING OPERATIONAL KPI TO GAIN COMPETITIVE ADVANTAGES ( PART 3 OF 3)

Below example assume the following  scenario:

• The business is a distributing company;
• There is negligible chance of vertical integration and
• Competitors are consolidating to reach the consumer which therefore affect margin and potential restriction or loss of distribution channel.

Management can adopt following Operational KPIs so that the business can focus to drive continued growth and competitive success in the marketplace:

1. On-hand / on-time inventory available
2. Outstanding “open” order value
3. Net-new accounts through distribution network
4. Advertising and Promotion costs

Explanatory Notes on above Operational KPIs:-

Operational KPI 1 &KPI 2

From an operational standpoint,the availability of inventory and open order value enabled field sales representatives to gain competitive advantage through a better view of the customer and the right price and delivery pressures to apply.

Operational KPI 3 &KPI 4

Strategically,senior management could keep a pulse on the key metrics driving new business and whether costly marketing programs were delivering or not.

• EXAMPLES OF SOME OF BEST-IN-CLASS PERFORMANCE METRICS USED FOR OPERATIONAL KPI ( Part 2 of 3)
• OPERATIONAL KPIs – THE IMPORTANCE TO THE SUCCESS OF THE BUSINESS(PART 1 OF 3)
• KPA/KPI:Illustration of Good KPI
• Order-To-Cash Cycle:Definition,An Overview,Benefits,KPA and KPI
• Balanced Scorecard:Examples Of Internal Process Perspective KPI
• Balanced Scorecard:Examples Of Customer Perspective KPI
• Operational Headquarter:Diagonal’s Shift from Singapore To KL