Overview
The world is ever changing and supply chain disruptions have become the unexpected norm. To help you navigate and mitigate, we built a dashboard to measure supplier's on time performance, enabling our users to adjust the system lead time to actual lead times where needed to ensure timely ordering.
The supplier performance can also help our users focus their time on managing the suppliers that need to shape up, or highlight areas in need of supply base diversification. Selecting alternative suppliers if possible in locations where logistic lanes might run more smoothly at a given point in time.
Lead time analysis
The lead time analysis is found under the Vendors tab.
Vendors > select a supplier > Lead time analysis
After clicking Vendors, you'll be greeted with a vendor overview page from where you'll need to click on a vendor name.
This opens up the vendor details page, which has two parts:
Overview (opens by default)
Lead time analysis
Now click on the Lead time analysis
Welcome to the Lead time analysis dashboard
The dashboard is split into three parts:
KPI's: On top the user has four KPI’s showing calculations for the selected vendor
Performance chart: in the middle, the chart shows historical delivery performance of the vendor:
red indicates the system lead time
yellow is the calculated average
purple shows the actual deliveries
Historic delivered purchase orders (PO's) included in the lead time analysis calculations
by default all delivered PO's within the time frame contribute to the calculations.
the user can toggle out PO's that deviate and should not be included.
KPI’s
The user is greeted with four KPI's (key performance indicators) for the chosen supplier. The data reflects the time frame displayed in the "number of months"
Lead time analysis KPI's explained | All values are based on the selected vendor |
Lead time days 
| Current lead time value in the system, ERP or overwritten in AGR on the chosen vendor |
Average Lead time 
| The average measured lead time on the purchase order level, in last 12 months (settings, default). Or as chosen in the Number of months dropdown on the top of the page
[order date - arrived physical date] |
On time deliveries 
| Percentage of on time deliveries, on the purchase order level. Settings: Months included in the calculation (default 12 months). Settings: first order date, last or ignore with multiple |
Number of deliveries 
| Count of total number of deliveries in last 12 months (settings, default). Or the number of months chosen in the dropdown on the top of the page |
On time delivery calculations
Status / Ranking | Calculation method |
On Time Deliveries | Number of deliveries where order date + stated lead time match actual delivery date (+/- buffer that is configured globally) |
Early Deliveries: | Number of deliveries that have delivery time < than order date + stated lead time |
Late Deliveries | Number of deliveries that have delivery time > than order date + stated lead time |
List of Purchase orders
At the bottom of the page, the user can see a list of all purchase orders that contribute to the lead time analysis.
These are received purchase orders within the time frame chosen in settings (default is 12 months), or the number of months selected at the top of the page.
By clicking on the expand icon > each purchase order is expanded so the user can view the individual purchase order lines.
Each line is calculated individually against the item lead time, if it exists, else each line is measured against the vendor lead time.
Note the lead time analysis results are calculated against a single Purchase order on the header level, in line with the settings chosen, where the default calculation method is “Use first delivery date”
Settings
Navigate to the cogwheel icon > settings
General > Lead time analysis (scroll down to the bottom)
These are global settings, controlling calculations in the vendor overview and the Lead time Analysis.
Lead time & vendor settings | Description |
On time buffer days | An option to add buffer to the on time measurement: system lead time vs actual lead time. Often used for estimating internal inbound receiving time, days after arrival before it has physically arrived in the receiving site. |
Lead time calculation method | The lead time analysis is measured on the Purchase order as a whole, the user can choose to measure against the first delivery, last delivery or to ignore orders with multiple delivery dates. |
Number of months for calculations | Time horizon to include for lead time analysis, impacts KPI's for Purchased value, number of deliveries, On time delivery performance, Avg lead time, min & max lead time |
Number of purchase orders | A sub rule after the Number of months for calculations. In case it helps to minimize the number of purchase orders displayed in the list below the lead time analysis. |
Stock holding percentage | Calculates the column: stock holding cost. % cost of the current stock value.
By default the value is set to 0, prompting the user to insert their average stock holding cost percentage for the company.
Stock holding cost should cover: cost of capital, insurance, housing, forklifts, electricity, warehouse staff (servicing), risk and admin for example.
Many companies know this value as rough estimate, often around 25-20% per year |
Lead time analysis Example of using different settings:
Use first delivery
The List of Purchase orders below has the default calculation method on “Use first delivery date” from Settings to control “Delivery date” and “Actual lead time”.
Here the supplier get's a perfect score as each of these delivered purchase orders had a first delivery within the stated lead time +/- buffer days
Use last delivery
Now for the same list of purchase orders, we use the calculation method "latest delivery date" from settings to control “Delivery date” and “Actual lead time”, which has now turned PO 11 red and measuring 21 days as the actual lead time. In this case only 1 product was delivered later than 12 Nov while others were on time.
Expanding the PO, will show the purchase order lines, here we can see that one line was delivered on November 26th while the others came in on November12th.
Ignore orders with multiple deliveries
The third setting option is applied in the screenshot below “Ignore orders with multiple deliveries”, We now see that PO 11 is gray and the "use" button is toggled out. Because PO 11, had more than one delivery date it does not contribute to the resulting KPI's graph and averages.
