罗技的绩效指标设计

1、New Benchmarks and Performance Metrics for Progressive Asset ManagementGray Williams, VP WW Supply Chain - LogitechAnne Patterson, VP Client Delivery - WCTbidAgendanThe Problem Statement: Too Much InventorynMy Prescription for Inventory HealthnTargeted Asset Management ProcessesnKeeping Score Metric

2、snTools & Technology ReviewnConclusions & RecommendationsLogitech - Overview Personal Interface Products Off-shore contract manufacturers Surface transport Supply-demand synchronization is a constant challenge Need for continuous process of proactively identifying and dispositioning at-risk

3、inventoryThe Problem Statement: Too Much InventorySupply-Demand SynchronizationCost pressure Contract ManufacturingOff-shore productionSurface transportationProduct TurnoverFocus is on NPIReturnsOften 10% of outbound or moreSlow processing throughputAt-Risk Inventory Categories:1.Active Products2.Ob

4、solete Products (Factory New)3.Returns (White Box)4.D-Stock (Refurb)Making Matters Worse: Price ErosionPrice Erosion CurveCategory: Disk Drives02040608010012012345678910 11 12 13MonthPercent of List PriceHard driveOptical driveR/W DVDKeeping Inventory Moving: Progressive DispositioningStd. CostFull

5、Margin507525100125150TimeNPIEOL4-6 months6-12 months12+ monthsStill further erosion with negative PPVFurther erosion with returns, freight, and collectionsTypical Margin Erosion with Manual Dispositioning2.Disposition excess inventory wherever it is - factory, DCs, and channel3.Minimize the administ

6、rative and operational costs of dispositioning4.Strictly adhere to competitive bidding for finished goods and component shortages and excess dispositioning5.Ensure a complete audit trail 1.Move to a systematic process: continuously identify and disposition excess as early in the cycle as possibleIna

7、ctive ExcessPre-obsolete Excess (replacement developed but not released)Channel ExcessObsoleteTarget Margin Recovery 3 Steps to Inventory Health 1. Tune up your Inventory Policy01020304050607080900-90 Days91-180 Days181-365 Days365+ DaysPer Cent InventoryClear definitionClearly communicatedLink Prod

8、uct Life Cycle to Inventory PolicySet Goals% of inventory by aging categoryMonitor progress3 Steps to Inventory Health 2.Take Action: Progressively Disposition Excess InventoryInventory ThresholdProduct Life Cycle / ConditionActiveEOM, EOLActiveEOM, EOLActiveOpen Box DefectiveReview CycleMonthlyMont

9、hlyBi-WeeklyBi-WeeklyWeeklyWeeklyWeeklyProcess OwnerSalesSupply ChainSalesSupply ChainSupply ChainSupply ChainSupply ChainDisposition ProcessWCTBid Sales IntranetWCTBid to Approved BrokersRe-balance; hold Sales-InWCT In-Channel Direct LiquidationRe-BalanceWCTBid to Approved BrokersWCT Test / Repair

10、/ LiquidateFinished GoodsReturnsChannel Inventory 8 weeks 1 week 12 weeksChannel Intranet Auction SiteBroker Extranet Auction SiteSite Management Dashboard= Period Costs + Price Erosion Factor * (Excess in DC + Excess in Channel)Excess Index*: On the basis of current excess inventory of $40M, the ex

11、cess index is calculated as follows:Whse Costs: $286kStd Rev Costs: $400kE&O Reserve: $ 400kCost of Capital: $300k$1,386k+1%*($40M + $30M)= $1,386k + $700k In other words, the cost of inaction this month is $2M3 Steps to Inventory Health 3.Define Metrics and Measure Success$60$0$40$0$0$20$40$60$

12、80$100$120Q1Q2$MsActiveExcess*sample dataExcess Index: A Composite of Metrics1.Revenue / Recovery Component2.The Price Erosion factor3.Delta between sales price ( Distributor Discount) and WCT Market Intelligence (current market price). Index consists of the above delta calculated for the top n SKUs

13、 which make up 80% of the excess $ for the category4.(link to “The Price Erosion Factor - Example slide for returns cost components)5.Cost / Cost Avoidance Component6.Where is this excess? 7.Channel: cost of return8.Memphis: storage9.Indy: storage + 3p services10.The cost of returning channel invent

14、ory is higher than cost of holding inventory at Memphis. Thus, the location of the inventory is a factor in the exposure calculation (link to “Excess Index Cost Component slide for returns cost components)The Price Erosion Factor Distributor List Price(SKU1)n =1nDistributor List Price(SKU1)-WCTbid M

15、arket Intelligence Price (SKU1)Example: Let us say that of Active Inventory at the US Distribution Center, 12 SKUs make up 80% of the inventory (at standard cost). Calculating the Price Erosion Factor using the above formula for those 12 items will give a reasonable indication of price erosion.Exces

16、s Index Cost ComponentCalculate total quarterly return cost per unit using the appropriate factors such as those listed below. Divide this cost by the number of units in the channel pending return for the quarter. This is the increased liability of excess channel inventory and must be a part of the

17、Excess Index.nReturn Scrap Rate (%-age) * COGSnReturns Transaction Cost nTransportation Cost (1 Way)nRe-Work Cost nTotal Cost of Returns (000,000)The Progressive Dispositioning CycleWCTbid Channel Intranet AuctionWCTbid Liquidation AuctionScrap/Recycle Routine (monthly) identification of at-risk inv

18、entory Posted to intranet channel auction site Finance determines minimum pricing Sales force proxy bids on behalf of retailers Private Auction Approved close-out partners only Competitive bidding Total operational support from WCTbid Controlled destruction Recycling Compliance reporting The Progres

19、sive Dispositioning CycleWCTbid Liquidation AuctionScrap/Recycle Progressive Dispositioning is an interlock process ensuring: Inventory visibility: one real-time view for Sales, Finance, Supply Chain Brand protection: only approved liquidators Administrative Streamlining: overhead reduction Controls: Sarbanes-Oxley transaction transparency, closed loop inventory tracking, audit trail Metrics to drive continuous improvement WCTbid Channel Intrane