Fulfilment performance rising for majority of businesses

Strong like for like improvements in 2015 YTD are delivering a great set of POS performances for Europe's biggest brands and retailers.

by Adrian Cockett | 27th August 2015

The majority of businesses utilising POS are experiencing improved fulfilment performances to KPIs in 2015 against the same period in 2014. At mda we’ve seen this trend occurring each year for the last 5 years, and this research shows that in the last 12 months this rise has been felt across the wider industry too – which is great news.

This recognises the importance placed on POS and marketing collateral, but also the growth in technology and innovation that has helped deliver efficiencies and greater access to – and accuracy of – data.

Below we talk about some of the KPIs you should be using, however the results of this research helps support the belief we’ve always had that as an industry we’re here to support Europe’s biggest brands and retailers. All providers need to recognise the part we play in the utilisation and performance of your marketing collateral, campaigns, and investment.

It’s not enough to achieve – we need to push, challenge and improve your businesses and brands in our areas of expertise.

We need to innovate for you. We as your suppliers need to bring best practice and options to you, not just action what you need but you be one step ahead.

And this needs to be done on the foundation of reliability and accuracy. You need to have the confidence in your supplier to take charge and responsibility of POS and marketing fulfilment, and we’re delighted that this appears to be the case across the industry now too and that we as a collective group of suppliers are actively improving your businesses more and more.

5 POS and marketing fulfilment KPIs you should be using

Here we talk about some of the key fulfilment KPIs you’re probably already using (or certainly should be!), and some which you may not but should consider:

OTIF – On Time In Full

The classic KPI. The most common KPI used across fulfilment and logistics, quite simply the rate at which your fulfilment orders are delivered correctly and at the targeted time you’ve identified. You’d expect this to be around 98 – 99.5% dependent on the structure of your customer/ outlet requirements.

Stock Composition

The split of your stock that’s; Fast Moving, Slow Moving, Non Moving. Understandably you want Non Moving stock to be the absolute lowest, as the more stock you have moving the greater utilisation of marketing spend and reduced storage costs you’ll see.

The structure of your marketing supply chain will have a big impact on what this should be (e.g. campaign led versus ad hoc orders, heavy print weighting), but however your business is biased Fast Moving Stock should be at least 60% of your stockholding.

Stock Tolerance

With complex, high volume POS and marketing requirements outside of primary product logistics you’ll always find some variance in stockholding over the course of 12 months. However, with the rise of technology such as bar coded Fulfilment Centres, inventory management systems, this traceability within the industry is the strongest it’s ever been. Also, try looking at stock tolerance by stock category too, not just your overall requirements. This will help highlight any key problem areas.

Customer Satisfaction

Satisfaction is key. Whether your stakeholders or your customers, it’s not enough that KPIs are improving, you need a way to track everything else that is more difficult to quantify, such as sentiment, supportiveness of team, ease of ordering and reporting, and much more.

At mda we have our Famous For Service commitment, with regular satisfaction surveys and reporting – it helps ensure we’re focussed on doing everything right, both fulfilment performance and overall customer experience.

Activation Rate

Take your POS reporting and KPIs one step further. OTIF helps you understand how much collateral has got to the right place at the right time, but for POS it’s redundant without being activated.

Track your Activation Rates using technological solutions, break it down by brand, region or even individual outlet. Focus on improving this as part of a closed loop POS management solution – and tie in conformance too. This is one of the key areas to maximise the return from your POS and marketing collateral spend.

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