Definition of enterprise resource planning

(ERP)
Enterprise resource planning (ERP) refers to a type of software that organizations
use to manage day-to-day business activities such
as accounting, procurement, project management, risk management and
compliance, and supply chain operations. A complete ERP suite also
includes enterprise performance management, software that helps plan, budget,
predict, and report on an organization’s financial results.
ERP systems tie together a multitude of business processes and enable the flow
of data between them. By collecting an organization’s shared transactional data
from multiple sources, ERP systems eliminate data duplication and provide data
integrity with a single source of truth.

Today, ERP systems are critical for managing thousands of businesses of all sizes
and in all industries. To these companies, ERP is as indispensable as the
electricity that keeps the lights on
Enterprise resource planning systems are complete, integrated platforms, either
on-premises or in the cloud, managing all aspects of a production-based or
distribution business.
Simply put, ERP is the vehicle for integrating people, processes, and technologies
across a modern enterprise
For example: consider a company that builds cars by procuring parts and
components from multiple suppliers. It could use an ERP system to track the
requisition and purchase of these goods and ensure that each component across
the entire procure-to-pay process uses uniform and clean data connected to
enterprise workflows, business processes, reporting, and analytics.

When ERP is properly deployed at this automotive manufacturing company, a

component, for example, “front brake pads,” is uniformly identified by part
name, size, material, source, lot number, supplier part number, serial number,
cost, and specification, along with a plethora of other descriptive and data-driven
items.

Cloud ERP—A new ERP delivery model

Software-as-a-service (SaaS)
Enter the cloud—specifically, the software-as-a-service (SaaS) delivery model for
ERP. When ERP software is delivered as a service in the cloud, it runs on a
network of remote servers instead of inside a company’s server room. The cloud
provider patches, manages, and updates the software several times a year—
rather than an expensive upgrade every 5 to 10 years with an on-premises
system. The cloud can reduce both operational expenses (OpEx) and capital
expenses (CapEx) because it eliminates the need for companies to purchase
software and hardware, or hire additional IT staff. These resources can instead
be invested in new business opportunities, and the organization is always up-to-
date on the most recent ERP software. Employees can shift their focus from
managing IT to more value-added tasks such as innovation and growth
What are the 3 common types of ERP?
The three most common types of ERP are on-premises, cloud-based, and hybrid
ERP. An on-premises ERP system is run on-location on a company’s servers,
while cloud-based ERP operates on a third-party, remote server. Hybrid ERP is a
mix of both, often with an on-premises ERP at headquarters and cloud-based ERP
systems at subsidiaries.

ERP system WMS

Management of all a
company’s resources
Management of logic and operations in the
Specialisation (purchasing,
facility.
operations, finance,
logistics, etc.).
Goods receipt,
Warehouse organisation of stock,
Goods receipt, storage, organisation of stock,
operations and monitoring of
order prep, dispatch, returns, etc.
managed customer orders and
dispatched products.
Incorporates complementary modules that add
Incorporates some specific functions to serve the needs of any
Modularity and
specialised modules for facility. Among others, these include
advanced
various working areas simultaneously controlling inventory in the
warehouse
in the organisation, warehouse and physical stores, ensuring the
functionalities
including logistics. supply of the production lines, and coordinating
the stock in the various marketplaces.
Optimisation of Greatly optimises and simplifies operations
warehouse No. through rules for product distribution, thus,
operations minimising operator travel.
Sends detailed instructions to workers on how to
Errors and Limited to organising
perform operations, preventing mistakes and
productivity stock properly.
raising productivity.

13 Ways to Use ERP to Improve Supply

Chain Management
Planning: Planning capabilities in ERP software enable companies to
predict inventory and production requirements based on factors such as
historical demand, seasonal variation and sales forecasts
Purchasing: Replacing manual, paper-based steps with automated
purchasing can reduce cost and improve control over the buying process.
Companies can streamline purchasing by automating time-consuming,
manual approval steps

1. Procurement: ERP systems enable companies to centrally manage

the entire procurement process, from evaluating and approving
suppliers to managing supplier bids and tracking orders.
Procurement software helps to minimize cost by ensuring that orders
are directed to preapproved suppliers and take advantage of
negotiated contract terms. Dashboards and reports provide real-time
views of spending and supplier performance.
2. Supply chain execution: ERP software helps companies efficiently
manage complex production processes, coordinating inventory,
manufacturing resources and logistics to ensure on-time completion
and delivery. Businesses have real-time visibility into all stages in the
production process, from sales orders to fulfillment.
3. Monitoring: Traditionally, supply chain monitoring required
businesses to manually pull and consolidate data from many different
systems. This complex and time-consuming process was prone to
error and made it almost impossible to get up-to-date information.
With supply chain data integrated into an ERP system’s database,
businesses can use real-time dashboards to monitor performance
across their entire supply chain. This helps them quickly adjust to
problems, such as delays in delivery times or manufacturing
equipment breakdowns.
4. Maintenance: Maintenance and asset management applications
integrated into ERP suites help companies track equipment
utilization, schedule maintenance to keep production running
smoothly and monitor asset costs.
5. Measurement: Successful supply chain management depends
largely on the ability to collect, analyze and gain actionable insights
from data. ERP solutions provide extensive measurement and
reporting capabilities that gather data from internal and external
sources. Companies can use customizable dashboards and reports
to monitor key performance indicators (KPIs) and supply chain
metrics, such as production cycle times, inventory levels and supplier
performance.
6. Collaboration and communication: ERP systems facilitate
communication and collaboration within the company and with
external suppliers. Procurement, production, sales and inventory
management teams all use the same shared database; information
updated by one group is immediately available to everyone else.
 Portals enable suppliers and customers to efficiently track order
status and communicate with the business.
7. Inventory management: Sophisticated inventory management
systems help companies ensure that they maintain the right amount
of inventory to feed production processes and fulfill customer orders.
For example, ERP systems can alert purchasing groups when it’s
time to reorder items, based on factors such as seasonal sales data,
predicted customer demand and supplier lead times, in addition to
current inventory levels.
8. Warehouse management: Warehouse management systems
(WMS) integrated into ERP suites enable companies to run
warehouses more efficiently, helping to reduce costs and fulfill orders
quickly. WMS can help companies optimize warehouse space,
monitor inventory, track productivity and improve picking and packing
efficiency.
9. Material management/material requirements planning
(MRP): Material requirements planning software systems help
businesses plan efficient production schedules by ensuring that the
right materials are available at the right time. The software
determines the quantities of raw materials and other inventory that
will be required to meet demand, and when the materials will be
needed. Advanced MRP systems allow businesses to optimize
production and delivery by analyzing the impact of multiple potential
scenarios, such as different shipping locations.
10. Vendor performance assessment: Continuous assessment
of vendor performance enables businesses to pick suppliers that
consistently meet requirements. ERP software provides analytics that
companies can use to measure and compare supplier performance
based on metrics such as lead times, on-time delivery, order
accuracy and cost.
11. Global visibility: ERP systems can provide better visibility into
raw materials, subassembly and final products as they move from
supply to production and delivery — both within and outside the
company. This supply chain visibility is critical to increasing operating
efficiency and improving relationships with customers and suppliers.
For example, organizations can track raw materials as they move
from vendors to company warehouses, monitor them in inventory and
throughout production and finally track the delivery of finished
products to the customer.
What is SAP ECC?

SAP ECC stands for SAP ERP Central Component. It’s also known as SAP ERP. It’s one of
SAP legacy applications that originally designed to operate on a third-party database such
as Oracle and IBM DB2.

SAP ECC is the system that most companies have and are familiar with because it includes
the more commonly used modules such as financials, human resources (HR),
warehousing, and logistics. SAP ECC also has modules such as Production Planning,
Materials Management, and Plant Maintenance for manufacturers.

SAP ECC is the core product within SAP Business Suite and should not be confused with
SAP Business Suite. SAP Business Suite goes beyond the foundational modules and
supports specialized or complex functions such as supply chain management (SCM) and
customer relationship management (CRM). Similar to SAP ECC, SAP Business Suite can run
on a third-party database such as MSSQL, IBM DB2, and SAP HANA.

What is SAP HANA?

SAP HANA is an in-memory columnar database designed to accelerate SAP apps and
business processes that was released in 2010. SAP HANA is now the foundation for running
SAP Business Suite products

SAP Business Suite on HANA is SAP ECC that operates on the SAP HANA database. If you are
running SAP Business Suite on a third-party database, you can move it to SAP HANA. When you put
SAP Business Suite on HANA, you improve performance without having to make changes to the
app layer. SAP Business Suite performs faster on SAP HANA because it’s working inside the
memory component

SAP ECC is the ERP system and SAP HANA is the in-memory database, designed to handle
transactions and analytics. HANA was originally designed to be a data warehouse, but it
has grown into all-in-one data platform that manages analytical, transactional, and
application development.

SAP plans on terminating its maintenance support for SAP ECC in 2027 so SAP
customers will be required to move to S/4HANA.

SAP rebuilt SAP ECC from the ground up to create SAP S/4HANA in 2015 to take advantage
of SAP HANA’s performance and data analytics capabilities. That is a big benefit and a big
drawback. S/4HANA can exclusively run on SAP HANA while SAP ECC can run on a
third-party database.

S/4HANA is designed to solve complex problems and manage larger amounts of data than
ECC
Difference Between SAP HANA vs. SAP S/4HANA?

It’s simple. SAP S/4HANA is the ERP system like SAP ECC while SAP HANA is the database

SAP ERP Modules

FI (Financial Accounting): Manages financial transactions and accounting information.
Submodules: General Ledger, Accounts Payable, Accounts Receivable, Asset Accounting, Bank
Accounting, Travel Management.
CO (Controlling): Focuses on internal reporting and provides information for management decision-
making.
Submodules: Cost Elements, Cost Centers, Internal Orders, Activity-Based Costing, Product Costing,
Profitability Analysis, Profit Center Accounting.
SD (Sales and Distribution): Manages sales orders, distribution of goods, and billing processes.
Submodules: Sales Support, Sales, Shipping & Transportation, Billing, Sales Information System.
MM (Materials Management): Manages procurement processes and inventory management.
Submodules: Purchasing, Inventory Management, Invoice Verification, Material Master, Vendor
Master.
PP (Production Planning): Manages manufacturing processes, including production planning and
control.
Submodules: Master Data, Sales and Operations Planning, Demand Management, Material
Requirements Planning, Shop Floor Control.
QM (Quality Management): Ensures product quality through planning, inspection, and control
processes.
Submodules: Quality Planning, Quality Inspection, Quality Control, Quality Certificates.
PM (Plant Maintenance): Manages maintenance activities to ensure the proper functioning of
equipment.
Submodules: Equipment and Technical Objects, Maintenance Planning, Maintenance Execution,
Work Clearance Management.
HR/HCM (Human Resource/Human Capital Management): Manages employee-related processes.
Submodules: Personnel Administration, Organizational Management, Time Management, Payroll,
Recruitment, Training and Event Management.
WM (Warehouse Management): Manages warehouse operations and inventory.
Submodules: Warehouse Structure, Inventory Management, Goods Receipt, Goods Issue, Stock
Transfer, Picking, Packing.
PS (Project System): Manages and supports all phases of project management.
Submodules: Structures, Planning, Execution, Controlling.
CS (Customer Service): Manages customer service processes, including service order management
and service contracts.
LE (Logistics Execution): Manages logistics processes such as shipping, transportation, and
warehouse operations.
PP-PI (Production Planning for Process Industries): Tailored for process industries like chemicals,
pharmaceuticals, and food and beverages.
IS (Industry Solutions): Specific solutions for various industries, including:
IS-Retail: Retail industry
IS-Oil: Oil and gas industry
IS-Banking: Banking industry
IS-Utilities: Utilities industry
SAP Variations
SAP S/4HANA: The next-generation ERP suite built on the HANA in-memory database platform. It
offers real-time analytics and simplified data models.
SAP Business One: An ERP solution designed for small and midsize businesses (SMBs). It covers core
business functions such as accounting, sales, inventory, and operations.
SAP Business By Design: A cloud-based ERP solution for mid-sized companies. It integrates core
business processes and offers analytics and mobile access.
SAP ECC (ERP Central Component): The core component of the SAP Business Suite, widely used by
large enterprises for their ERP needs. It encompasses various functional modules like FI, CO, SD,
MM, etc.
SAP CRM (Customer Relationship Management): Manages customer relationships and integrates
with sales, marketing, and service processes.
SAP SCM (Supply Chain Management): Enhances supply chain processes, including planning,
manufacturing, logistics, and asset management.
SAP SRM (Supplier Relationship Management): Manages procurement and interactions with
suppliers.
SAP PLM (Product Lifecycle Management): Manages the entire lifecycle of a product from inception,
through engineering design and manufacturing, to service and disposal.
SAP APO (Advanced Planner and Optimizer): Focuses on supply chain planning, including demand
planning, supply network planning, and production planning.
SAP BW/BI (Business Warehouse/Business Intelligence): Provides data warehousing and reporting
capabilities for comprehensive business analysis.
SAP HANA: An in-memory database platform that supports real-time data processing and analytics.
SAP SuccessFactors: A cloud-based human capital management (HCM) solution covering core HR,
talent management, and employee engagement.
SAP Ariba: A cloud-based procurement solution that connects businesses with their suppliers.
SAP Concur: Manages travel, expense, and invoice processes.
SAP Hybris: E-commerce and customer engagement solutions, now part of SAP Customer Experience
(CX).
SAP Leonardo: A digital innovation system that integrates technologies like IoT, machine learning,
and blockchain.
SAP Fiori: A user experience (UX) framework providing a responsive and intuitive user interface for
SAP applications.
SAP Integrated Business Planning (IBP) is a part of the broader
SAP SCM (Supply Chain Management) suite, specifically focusing
on supply chain planning and optimization
Key Components
SAP IBP for Sales and Operations (S&OP)
SAP IBP for Demand
SAP IBP for Inventory:
SAP IBP for Response and Supply:
SAP IBP for Demand-Driven Replenishment:
SAP IBP is designed to work seamlessly with other SAP solutions, including
SAP S/4HANA, SAP Ariba, and SAP Leonardo. It leverages the in-memory
computing power of SAP HANA to deliver real-time insights and analytics,
making it a vital component for companies aiming to achieve a fully
integrated and responsive supply chain.
Cost of SAP IBP: INR2,552,820
Streamlining Warehouse Operations with Lean Six Sigma

This distribution company embraced Lean as part of their company’s strategy to constantly reduce
costs and improve customer service. They began their journey by applying Lean and Six Sigma tools
to their primary operation, warehousing, picking, packing and shipping packaged goods to
customers. This project used 3 Lean Six Sigma Tools:  Spaghetti Maps  Pareto Analysis  5S Visual
Management

Visualizing the Problem with Spaghetti Maps A Spaghetti Map is a simple Lean tool to help visualize
extra movement of people within a process. It establishes baseline performance, shows the need for
improvement and provides insight into how to redesign the layout of a work-area. They can
sometimes be combined with time studies to break down each step and its duration

The Pack & Ship Area Spaghetti Map is of 8 orders being packaged and prepared for shipment (via
UPS). This Map is a close-up of the Pack & Ship Area. It tells shows something different. Here we see
repetitive and un-necessary movement. One table is for packaging, a different table has the UPS
computer, a different table has the internal ERP system computer (that closes the order and moves
it to the invoice queue) and yet another table has the ticket printer. Finally, they stored boxes about
25 feet from the packaging area. Each order required a separate trip to box storage. Clearly the
Spaghetti Diagram makes the case that this warehouse could be improved;

Using Pareto Analysis to Make Improvements We next moved to using a Six Sigma tool, Pareto
Analysis, to analyze how to reduce the move-time required to pick, pack and ship an order.

We created a Pareto Table for the number of times an item was on an order. Quantity or Sales $ was
not important for this project as we were concerned with reducing movetime. Therefore, how many
times a warehouse attendant had to go to that item to pick it, was the critical metric. Item Orders %
of Total Cum % CK-932-442 476 1.08% 1.08% CK-70S6-035-44 433 0.98% 2.06% AR-25-501181-9 432
0.98% 3.04% WEM-WM823309 330 0.75% 3.79% TWE-1140-1102 297 0.67% 4.46% AR-25-501331-0
263 0.60% 5.06% NS-115-035-45 258 0.58% 5.64% HOR-04-0270-00 255 0.58% 6.22% TUN-3327GT2
251 0.57% 6.79% STI-KK008 248 0.56% 7.35% TWE-1340-1100 227 0.51% 7.87% TWE-1240-1120 222
0.50% 8.37% MLR-000068 215 0.49% 8.86% JAC-0744-0504 207 0.47% 9.33% VIC-0330-0006 200
0.45% 9.78% SAI-20160 197 0.45% 10.23% This table shows the items that make up the top 10% of
“picks”. There were about 6000 items kept in this warehouse. Sixteen items accounted for 10% of all
picks! The concentration of the top items was much higher than 80/20. It was actually 80/10, with
10% of the items accounting for 80% of the picks. info@[Link] 6 Copyright: Supply
Velocity, Inc. Top Item Location The team then mapped the location of these top 500 items. This was
very manual work and they therefore started with the top 250. As you can see, the top sellers in
terms of “picks” were located all over the warehouse

Spaghetti Map - After The top 500 items were all moved as close as possible to the Pack & Ship Area.
Many of the smaller items were moved right into the Pack & Ship area on shelves next to the packing
 table. As shown below, picking 11 items took much less movement and time than where this team
started

SUPPLY CHAIN MANAGEMENT

My duties as a supply chain manager

 Create the company’s supply chain strategy

Key Components Of A Supply Chain Strategy

A supply chain strategy is a long-term plan developed by a company to effectively

manage its supply chain operations in order to achieve its business goals. It involves
designing and coordinating the flow of goods and services from suppliers to customers,
including procurement, production, transportation, and distribution
Supply chain strategy or design

During this phase, the supply chain is structured and configured

Strategic decisions made by companies include:

 location and capacities of production and warehouse facilities
 products to be manufactured or stored at various locations
 modes of transportation to be made available along different shipping legs
 type of information system to be utilized

Supply chain planning

Following are the planning decisions undertaken in supply chain:

 which markets will be supplied from which locations
 planned buildup of inventories (demand Planning)
 subcontracting, backup locations
 inventory policies

timing and size of market promotions

Supply chain operation

The goal of supply chain operations is to handle incoming customer orders in the best possible
manner. During this phase, the following activities are undertaken:
 firms allocate inventory or production to individual orders
 set a date that an order is to be filled
 generate pick lists at a warehouse
 allocate an order to a particular shipping mode and shipment
  set delivery schedules of trucks

place replenishment orders

Types Of Supply Chain Strategies

Agile supply chain strategy

An agile supply chain puts constant emphasis on efficient processes and empowered
employees. Agile supply chains are nimble enough to respond smoothly to sudden changes
in supply and demand. Adopting an agile model benefits the greater organization by allowing
it to act quickly and decisively.

Continuous flow model

The Continuous Flow model is focused on maintaining consistent and smooth supply chain
operations. This model maximizes efficiency by keeping supply steady and not allowing for
supply or demand fluctuations. An example of a company using this supply chain model is
Amazon. Their supply chain is designed to deliver products constantly, with little to no pauses in
supply flow. This allows them to maintain their reputation as a quick and reliable delivery service.
Fast chain model
The Fast Chain supply chain model is all about speed. This model prioritizes quick delivery and
timely responses to changes in supply or demand. An example of a company using this supply
chain model is Zara, the clothing retailer. They are known for their speedy supply chain, and the
ability to design and release new fashion trends within weeks instead of the typical six-month
period other retailers follow
Efficient chain model
The Efficient Chain supply chain model is focused on reducing waste and improving overall
supply chain efficiency. Toyota, with its highly efficient and successful lean manufacturing
system, is an example of a company using this supply chain model
Virtual supply chain model
The Virtual supply chain model is characterized by using virtual technology, such as cloud
computing and data analysis, to improve supply chain operations. This allows for greater visibility
and communication within the supply chain network and increased efficiency and flexibility
Custom-configured supply chain model
The Custom-configured supply chain model involves customizing the supply chain according to
specific customer demands or preferences. This requires strong communication with customers
and a high level of customization in processes and products. Dell is an example of a company
using this supply chain model, offering individualized computer configurations to meet their
customers’ specific needs
• The Supply-Chain Operations Reference model (SCOR) measures total
supply chain performance. It is a process reference model for supply-chain
management, spanning from the supplier’s supplier to the customer’s
customer. It is the most widely used model.
• It includes delivery and order fulfilment performance, production flexibility,
warranty and returns processing costs, inventory and asset turns, and other
factors in evaluating the overall effective performance of a supply chain.
• SCOR is based on five distinct management processes: Plan, Source, Make, Deliver,
and Return.

Plan - Processes that balance aggregate demand and supply to develop a course of action which best
meets sourcing, production, and delivery requirements
  Source - Processes that procure goods and services to meet planned or actual
demand.
 Make - Processes that transform product to a finished state to meet planned or
actual demand.
 Deliver - Processes that provide finished goods and services to meet planned or
actual demand, typically
including order management, transportation management, and distribution
management.
 Return - Processes associated with returning or receiving returned
products for any reason. These processes extend into post-delivery
customer support.

 Analyze data from shipping and delivering processes to find

bottlenecks and other issues
 Evaluate and report on KPIs
KPIs for procurement or purchasing

 Failed deliveries: calculates the percentage of deliveries that were

unsuccessful because the supplier didn’t comply with the agreement
established in terms of service or product quality. Failed deliveries =
Packages rejected ÷ Total purchase orders received x 100

 Supplier compliance rate: expresses supplier effectiveness and reflects the

level of delays in deliveries to the warehouse of products
purchased. Supplier compliance = Late orders ÷ Total orders received x
100

 Purchase order lead time: allows you to calculate the time elapsed from the
time the purchasing department places the order with the supplier to the
moment it is received at the installation. Purchase order lead time = Date of
receipt of order − Issue date
Examples of transport KPIs:

 Transport costs in relation to sales: this supply chain KPI shows the ratio of
transport costs to sales made. Transport costs versus sales = Total
transport cost ÷ Sales

 On-time deliveries: illustrates transport agility in the last mile as a

percentage. On-time deliveries = No. of on-time deliveries ÷ Total no. of
deliveries made x 100

 Fleet utilisation: determines the occupied transport capacity in relation to

total capacity in volume (ft3) or weight (lb). Fleet utilisation = Actual
capacity used ÷ Total capacity in kg or m3

Examples of warehousing KPIs:

  Unit cost of storage: relates the cost of storage with the number of SKUs in the
installation at a given time. Unit cost of storage = Total storage cost ÷ Nominal
capacity x Occupancy rate

 Internal order cycle time: indicates the time it takes to complete an order, from the
time it arrives at the installation until it leaves the dispatch dock. Internal order cycle
time = Order entry date − Dispatch date

 Full and on-time delivery rate: measures the number of purchase orders prepared
for pickup. It shows productivity and the level of customer service. Full and on-time
delivery rate = No. of full on-time orders ÷ Total no. of orders x 100

KPIs for cold chain validation

(CAPA): Compliance rate measures the percentage of shipments or
deliveries that comply with the specified temperature range and other
quality criteria.

Excursion rate measures the percentage of shipments or deliveries that

experience temperature deviations or breaches outside the acceptable
limits.

Examples of inventory KPIs:

 Stock turnover: shows the number of times inventory is replenished in a specified

time (if the data is annual, this will be throughout the year). The higher, the better, as
this means that sales are generating profits for the company. Turnover rate = Value
of SKUs sold ÷ Average stock value
 Stockouts: indicates the number of times a company wasn’t able to meet demand
due to lack of stock. Stockout rate = Unfulfilled orders ÷ Total orders x 100

 Inventory shrinkage: expresses inventory accuracy via a percentage. It reflects the

relationship between stock theoretically in the warehouse and the actual physical
inventory. Inventory shrinkage = (Stock you should have − Stock you actually
have) ÷ Stock you should have

 Monitor logistics to make sure they run smoothly

 Maintain supply chain inventory and records
 Train and guide employees
 Find cost-effective solutions for supply chain processes
 Resolve issues that come up (e.g. delays in delivery, accidents)
 Collaborate with other departments to create coordinated plans for
business growth
 Develop and implement safety guidelines in all aspects of the supply
chain (e.g. use of trucks, forklifts)
 Ensure supply chain processes meet legal requirements and
standards
 Communicate and negotiate with suppliers and vendors to land more
profitable deal.
 Supports proper utilization of ERP system

 Research new models of warehouse management, goods dispatch, and

product manufacturing to optimize the facility’s resources.

Key Performance Indicators (KPIs) play a crucial role in monitoring and optimizing
operations within the cold storage industry. Here are some technical KPIs that are
commonly used in cold storage facilities:

1. Temperature Compliance:
 KPI: Temperature Deviation Rate
 Measurement: Percentage of time the storage temperature deviates from
the specified range.
 Objective: Maintain the storage temperature within the required range to
ensure the integrity of stored products, especially in the case of vaccines or
perishable goods.
2. Energy Efficiency:
 KPI: Energy Consumption per Cubic Meter (or Square Foot) of Storage
 Measurement: Kilowatt-hours (kWh) of energy consumed per unit of storage
space.
 Objective: Optimize energy usage to reduce operational costs while
maintaining the necessary storage conditions.
3. Equipment Reliability:
 KPI: Equipment Uptime
 Measurement: Percentage of time the cold storage equipment is
operational.
 Objective: Ensure reliable operation of refrigeration systems and minimize
downtime to prevent temperature excursions.
4. Inventory Accuracy:
 KPI: Inventory Accuracy Rate
 Measurement: Percentage of actual inventory accuracy compared to the
recorded inventory.
 Objective: Enhance accuracy in tracking and managing inventory to prevent
stockouts or overstock situations.
5. Order Fulfillment Time:
 KPI: Order Processing Time
 Measurement: Time taken from receiving an order to completing the
shipment.
 Objective: Optimize order fulfillment processes to meet customer demand
efficiently.
6. Turnover Ratio:
  KPI: Inventory Turnover Ratio
 Measurement: The number of inventory cycles completed in a specific
period.
 Objective: Minimize excess inventory and improve the efficiency of inventory
utilization.
7. Occupancy Rate:
 KPI: Storage Space Utilization
 Measurement: Percentage of total storage space that is currently in use.
 Objective: Optimize storage space usage to maximize efficiency and reduce
operational costs.
8. Cold Chain Integrity:
 KPI: Cold Chain Violations
 Measurement: Instances where the cold chain is compromised during
transportation or storage.
 Objective: Minimize cold chain disruptions to ensure the quality and safety of
temperature-sensitive products.
9. Maintenance Cost per Unit:
 KPI: Maintenance Cost per Cubic Meter (or Square Foot) of Storage
 Measurement: Total maintenance costs divided by the total storage
capacity.
 Objective: Control and reduce maintenance costs while ensuring equipment
reliability.
10. Safety and Compliance:
 KPI: Compliance Rate with Safety Standards
 Measurement: Percentage of compliance with safety regulations and
standards.
 Objective: Ensure that the facility complies with safety protocols and
regulatory requirements to prevent accidents and product contamination.
11. Environmental Sustainability:
 KPI: Carbon Emission Intensity
 Measurement: The amount of carbon emissions per unit of storage capacity.
 Objective: Minimize the environmental impact of operations by reducing
carbon emissions and adopting sustainable practices.

These KPIs help cold storage facilities monitor critical aspects of their operations,
maintain product quality, and optimize efficiency. Customizing these indicators
based on specific industry requirements and facility goals is essential for effective
performance measurement.

You
what are the kpi figures for a successful cold storage
ChatGPT
ChatGPT
The specific Key Performance Indicators (KPIs) for a successful cold storage facility
can vary based on the facility's objectives, industry standards, and the nature of the
products stored. However, here are some typical KPI figures that can indicate
success in a cold storage environment:

1. Temperature Deviation Rate:

 KPI Figure: Less than 1-2% of total storage time with temperature deviations
outside the specified range.
 Objective: Ensure that the temperature is consistently maintained within the
required range to preserve the quality and safety of stored products.
2. Energy Consumption per Cubic Meter:
 KPI Figure: Below 1.5 kWh per cubic meter of storage space.
 Objective: Achieve energy efficiency to minimize operational costs while
meeting temperature control requirements.
3. Equipment Uptime:
 KPI Figure: Equipment uptime of at least 98-99%.
 Objective: Ensure reliable operation of refrigeration equipment to prevent
temperature excursions and minimize downtime.
4. Inventory Accuracy Rate:
 KPI Figure: Inventory accuracy rate of 98% or higher.
 Objective: Enhance accuracy in tracking and managing inventory to avoid
stockouts or overstock situations.
5. Order Processing Time:
 KPI Figure: Order processing time within 24-48 hours.
 Objective: Optimize order fulfillment processes to meet customer demand
efficiently.
6. Inventory Turnover Ratio:
 KPI Figure: Inventory turnover ratio of 8-12 times per year.
 Objective: Minimize excess inventory and improve the efficiency of inventory
utilization.
7. Storage Space Utilization:
 KPI Figure: Storage space utilization rate of 80% or higher.
 Objective: Optimize storage space usage to maximize efficiency and reduce
operational costs.
8. Cold Chain Violations:
 KPI Figure: Minimal cold chain violations, ideally zero.
 Objective: Minimize disruptions in the cold chain to ensure the quality and
safety of temperature-sensitive products.
9. Maintenance Cost per Cubic Meter:
 KPI Figure: Maintenance cost per cubic meter below $0.50.
 Objective: Control and reduce maintenance costs while ensuring equipment
reliability.
10. Compliance Rate with Safety Standards:
 KPI Figure: 100% compliance with safety regulations and standards.
 Objective: Ensure that the facility meets safety protocols and regulatory
requirements to prevent accidents and product contamination.
11. Carbon Emission Intensity:
 KPI Figure: Carbon emission intensity below 0.5 kgCO2e per cubic meter.
 Objective: Minimize the environmental impact of operations by reducing
carbon emissions and adopting sustainable practices.
.

Achievements:
Single Point of Contact (SPOC) for five vendors (with a budget of INR 3.8 Bn),
including 2 out of the Top 80 vendors considered critical by the company.
4. Headed sourcing projects of three new full models (120 average parts per vehicle)
along with sourcing projects of 5 major categories and various sheet metal brackets
of all models

Received Achievement Award for Q1 FY2021 & Q2 FY1819 from the

division of ~60 members at Maruti Suzuki
2. Single Point of Contact (SPOC) for seven vendors (with a budget of INR 2.9 Bn) and
ensured zero delivery defaults and 100% delivery marks in all monthly vendor
ratings.

Managed portfolio of Rs 500 Cr+ power transformers orders for end-to-end business
operations
- Boosted YOY order booking from non-established product offerings to Rs 13.7 Cr,
up by 130%

Generated revenue of Rs 195 Cr by delivering 20+ supply contracts of boiler

auxiliaries equipment
- Trimmed material wastage, in-transit damages, and shortages by 23%

Reduced the procurement TAT by 12 weeks through strategic planning and

establishing 25 long term contracts for variety of semiconductor items and services.
• Led end-to-end sourcing for critical avionics R&D projects (LCA Tejas, ALH, LCH,
SU-30MKi) via hybrid procurement (Bidding, LTBA, GEM portal), optimizing supply
chain operations.

Driving consumption of analytical solutions and validating the success of analytical

solutions via business and technical KPIs

Integrated erstwhile end to end supply chain processes from standalone database
into SAP ERP system thereby augmenting spares support to field forces by from 70%
to 90%..

Played a key role in data cleansing to ensure demand accuracy, demand planning,
Dues in/Dues out management, and formulation of RFx/RFPs following GFR &
Defence Procurement guidelines

Spearheaded Training programs of 200+ staff on SAP ERP MM & WM integrating all
end to end process deliveries and ensuring smooth flow of Data on new system.
I played a pivotal role in increasing our customer base to almost double and introducing
medical supplies in our product portfolio which boosted our annual turnover from INR
680 million in 2020 to INR 1100 million in 2023. It was the collective hardwork of my
team in successfully applying the 4P's (Promptness, Politeness, Professionalism, and
Personalisation) to achieve this result

In Agri-produce the customers are a diverse category of farmers from small, marginal
to corporate and contract farming. Consequently, the produce stored was also in
proportion to the output of the varied farmers. We had more than 15000 farmers using
our services storing different produce, quantity and quality

My efficient inventory management practices lead to reduced inventory holding cost,

minimized product wastage, and better utilisation of storage space. And my client
retention percentage was the best among the 4 junior Plant Managers.