BALANCE SCORECARD KEY PERFORMANCE INDICATORS - SMART

With Measurements, everyone can understand how their Company is doing base on each ones work contributed at any point of time. Therefore, the concerned organization can easily be notified to align, communicate, coordinate and cooperate in order to minimize or prevent loses.

With Real Time and Accurate Measurements as Performance Metrics for Management Decision Making (MBO) from different Levels throughout the entire Organization based on Shared Vision of Success or Critical Success Factors. Another Term is KRAs (Key Results Area).

KPI is more than a scorecard. It is an Efficacious Functional Organizational Processes (involving People, Economical Lay-Outs, Machines, Facilities, Inventories, Documentation, MIS, Training Programs, Policies) as Standards, Technologies, Strategies & Management

BENEFITS:

* BSC KPI-SMART facilitates for the Management (from Top to Lowest Level - in Command Accountability Chain and Cross Functional / Sectional) and even to the entire Organization to be focused on a day to day (with Cut-Off Time) basis as to what really matters activities ... Accurate and Real Time PERFORMANCE METRICS of each one.

EVERYONE in the Organization's (From Top Management Cascaded to the Micro Unit Personnel) Key Performance Metrics are INTERCONNECTED, INTER-RELATED AND INTEGRATED in order to Effectively and Efficiently Achieve their Shared Vision of Success.

Ascertain All Critical Success Factors (Key Results Area) in BSC 4 Perspectives (shown below in colored and indented fonts) and establish each ones KPI-SMART [KEY PERFORMANCE INDICATORS - SPECIFIC, MEASURABLE, ACHIEVABLE, RELEVANT AND TIME BOUND) + the 3Os Essential Functions of Management (ORGANIZING, ORCHESTRATING AND OVERSEEING)].

SMOOTH FLOW of the Business because each Department are both the INTERNAL CUSTOMER and SUPPLIERS with Lead Time.

GROWTH of the Company's Business can be achieved faster

* EASILY

1) Increase Sales and Collection,

2) Cost Efficient - Increase in Profits

3) High Yield Mileage from Usages of Inventories, Man Hours, Machines, Utilities and Facilities,

4) Minimize Lost of Opportunity to Sell - EOQ

5) Minimize Wastage | Spoilage and Cost of Money - EOQ

6) Tally | Check and Balance

7) And many more

METHOD:

MISSION | PURPOSES from Shared (Owners and Top Executives) Vision of Success:

CRITICAL SUCCESS FACTORS (Key Results Area) for Interconnected, Inter-related and Integrated 4 Balance Scorecard Perspectives (Customers, Finance, Internal Business Processes and Organizational Capacity (Learning and Growth)

Each Perspective's CSF | KRA, What is its' KPI-SMART (Specific, Measurable, Achievable, Relevant and Time Bound) + Control Management | Operations Audit

* SPECIFIC - Has to be Specific in SKU, Product Industry or Category, Outlet or Customer, Key Personnel, Immediate Superior and Cross Functional Officer * MEASURABLE such as UOM (Unit of Measurements), Weight, Quantity; Peso (and other Currencies) - Previous cut of gap analysis to target

* ACHIEVABLE (course of actions) | for Organizing and Orchestrating. Has to do ...

(a) Processes, Facilities, Equipment, Other Internal Resources in order to improve

(b) Leadership, Management (3Os Essential Function Cycle) Training Program to improve

* RELEVANT to both External and Internal Customers and Suppliers

* TIME BOUND or Cut-off Time has to have Preventive Allowance

(a) Process Roll - Out to Implementation

* CONTROL MANAGEMENT | OPERATIONS & COMPLIANCE AUDIT

(a) Overseeing to ensure

Critical Success Factor | Key Results Area 1

Inventories are always available for timely delivery based on promised Lead Time in reference to Logistics' Master Route Plan per Week, Bi-Weekly and Monthly

KEY PERFORMANCE INDICATORS

SPECIFIC -MEASURABLE -ACHIEVABLE -RELEVANT -TIME BOUND + MGT CONTROL

INTERCONNECTED, INTER-RELATED and INTEGRATED Application of BALANCE SCORECARD KPI-SMART 4 Perspectives (CUSTOMERS, FINANCE, INTERNAL BUSINESS PROCESSES, ORGANIZATIONAL CAPACITY | LEARNING AND GROWTH) to a Company's "Critical Success Factor (KRA)

CUSTOMERS

(Distributors, Dealers, Retailers and End Consumers)

1. Inventories are always available for timely delivery based on promised Lead Time in reference to Logistics' Master Route Plan per Week, Bi-Weekly and Monthly

Disclaimer:

SCM System can only Minimize the Loss of Opportunity To Sell, as well as in terms of Over-Stocking that could lead to Spoilage and Cost of Money

FINANCE |

Corporate Planning (a Strategic Management Tool to Map out a Course of Action that will result in Revenue Growth & Increase Profits by making Internal Operations more effective & productive)

1. Budget for the SCM (Supply Chain Management) to ensure Customers' Orders are complete and delivered as Planned

1.a. Inventory remaining balance good for one week (from LOCAL Supplier | Production with maximum of 4days to one week lead time) vis-a-vis receiving of delivery | partial transfer. Example - 4 days maximum LT, have ORDERING POINT when items good for 8 working days. With this system, your periodical ending balance will be limited to a maximum of 8 days and not more than that will only be spoiled soon and or cost of money.

Note: Go down to same highlighted color in IBP

1.b. At least 3 Suppliers for each item. Preferably with Terms and Credit Lines

1.c. Have weekly Lot (Number of Batches) Production for quality high yield mileage over usage of Man Power, Inventories and Utilities for Cost Efficiency - Preparatory and Post Production Cost to be spread over the Yields

1.d. Closely work with the Plant Officer for CAPEX with Schedules for increase in Productivity, Logistics, and Storage if requires

1.e. Develop an Accurate and Real Time (almost due to transmittal process) Information | Performance Metrics to have an effective courses of actions with the following format (sample in brief one)

Use Customized SoftWare or Excel Link eFiles to Auto-Generate the MIS from Raw Data Transaction Encoding

P & L Analysis

Peso and Cost Proportions to Net of Sales for Budget Control Management.

Note:

Each Industry has more or less Cost Proportion parameters as reference. And study in-depth "why" or "how come" others get lower | "how" to increase your profit margin.

(a) Gross Sales

Less: Discounts | Senior Citizens | Returns | etc. (Breakdown in Percentage to easily determine particularly in the returns or its causes to address)

(b) Net of Sales (Acceptable Percentage if not, then solve)

(c1) Cost of Goods Sold - Currency to a Regular One | % over Net Of Sales

c.1. Beginning

c.2. + Received (purchased)

c.3. - Ending Balance | Available for Selling - Determine Percentage for Inventory Management analysis (economical quantity)

c.4. = Cost of Goods

c.5. Variance from Quantity Sold

c.6. Cost of Rejects, Spoilage and others related caused by Handling and Inventory Management

(c2) Other Manufacturing Costs (Variable)

c2.1. Labor Cost - preferable piece rate if applicable

c2.2. Electricity

c2.3. Water

c2.4. Others

(d) Gross Profit After Manufacturing Cost

(e) Operating Expenses (OPEX)

e.1. FIXED Administrative Cost (PHP Over NOS - Sample Upper Control Budget Parameters for Restaurants, Manufacturing, etc. | you may check google search)

e.1.1. Rental - 8%

e.1.2. Compensation Packages - 17%

e.1.3. Electricity

e.1.4. Water

e.1.5. Telecom

e.1.6. Supplies

e.1.7. Depreciation

e.1.8. Others

e.2. VARIABLE Operating Costs

(f) Profit After OPEX

(g) Capital Expenses (CAPEX) - base on Cash Flow Schedules?

(h) Profit | Return On Investment after CAPEX

COSTS (Kilos, Quantity, Time, Peso, Percentage) ANALYSIS for CONTROL PARAMETERS [for Quality Consistency and Yields Mileage over Time & Motion, Inventories Usage, Facilities including Utilities] and REAL TIME PERFORMANCE METRICS

(a) PRODUCTION Per Lot and Each Batch (total processes)

For Commissary | Manufacturing | Restaurants

a.1. Per Product

a.2. Per Process (Assembly)

a.3. Others such as Preparatory and Post Operations for each Assembly in a Lot Production (total number of batches minimum). Maybe relevant to restaurants who partially cooks and pack per serving sizes.

(b) Per DEPARTMENT with Section Breakdown

For None Production Related Sections | Departments | Divisions - base on TRANSACTION COUNTS PER HOUR.

c.1. Drop Systems Per Van Route Trip Cost Over Revenues

c.2. Per Outlet delivered Over Revenues

c.3. Others

(d) WAREHOUSE FINISH GOODS (WFG) Cost Analysis of its Operations

d.1. Control Parameters (Time and Motion, Transaction Count), and Performance Metrics

Cut-Off Time in Receiving Orders for following day's deliveries in 3Cs (Communication, Coordination and Cooperation) with Logistics in reference to WFG's preparation base on drop system lay-out (first batch load into the Van for last drop outlet) including Dispatching Time. In order for WFG to schedule the preparation of orders per drop (first to load outlet into the Van), piling per drop - bottom are the Hard | Bulky | Heaviest (sealing), others. As well as Man Power Scheduling, the Facilities (particularly the area for turn-over to Logistics' Van Driver or Helper), Pallets and or Crates per Outlet, Shrink Wrap, and Handling Equipments.

Separated Frozen, Chilled and Dry Items Per Outlet will have to be separated

d.2. Number of Transaction (Number of Outlets | Revenues, Cost & Profit | Percentage of Total Cost Per Trip Over Revenues | others ) per Van Trip Costing for LOAD CONTROL PARAMETERS (Upper to Lower Limits) PROTOCOL.

d.3. Quality of Products Parameters and Performance Metrics - Cost Analysis

Performance Metrics (Quantity and Cost of Returns, Rejects, & Other Related Loses) in relation to PPS-QIP (Product Preservation Standards - Quality Inspection Program), as well as FIFO Rotation & Replenishments for Compliance and Continuous Improvements

d.3.a. (PPS) Product Preservation Standard Parameters and its (QIP) Quality Inspection Program Compliance Report

(a) Spot Audit before any withdrawals preferably

(b) Or upon withdrawal | issuance though may incur multiple handling cost

Note for Outlet receiving from Logistics Van - in the presence of the Customers (Outlet Officer)

d.3.b. FIFO (First In - First Out) Lay-Outs Policy to prevent Spoilage

(a) Economical Floor Lay-Out Process Flow

a.1. From Receiving of Finish Goods (Cut-Off Time to Optimize Yield Mileage over Man power time and motion, etc.) to Queue | Piling Standard and Proper Tag, FIFO Rotation and Replenishments [Items in Queue Piles will only be handled to the Warehouse Rack Shelving (Top Most or Nearest Receiving Door Stocking Area for Last-In, Last-Out)

a.2. SKU FIFO Rack Levels Flow (Bottom for Issuance - oldest stocks though within acceptable Shelf Life Parameters for Factory Plant)

a.3. SKU BIN (Standard shelf allocated column) Pile System - Innermost are supposedly for Last Out

a.4. From Preparation of picking for Issuance, handling, then to proper turn-over floor lay-out

Diagrams, Illustrations in Specific Post or Wall as Guide | Bulletin Board

d.4. Inventory Management Cost Analysis

(a) Daily Cut-Off of Ending Inventories Cost (Quantity per SKU) base on Lead Time from Production

(b) Percentage of used storage space from potential revenues

d.5. Other WFG costing that will also include Over Time Pay

(e) WAREHOUSE RAW MATERIALS and SUPPLIES (WRM&S)

e.1. Control Parameters (Time and Motion, Transaction Count), and Performance Metrics

Cut-Off Time in Receiving Production Requests for following day's or shift's deliveries in 3Cs (Communication, Coordination and Cooperation) with Production Sections in reference to WRM&S's preparation base on each of the Production Assembly's (Stage) Preparatory Schedules. In order for WRM&S to schedule the preparation of each ones' request, piling per Assembly Area, others. As well as Man Power Scheduling, the Facilities (particularly the area for turn-over to each Authorized Production Assembly Operator), Pallets and or Crates per Assembly, and Handling Equipments.

Bulk Assorted SKUs Piling Standard per Handling Batch to each Assembly Area.

e.2. To minimize loss of Opportunity To Produce and Sell

e.2.a. Use or develop SCM WRM&S EOQ (Economical Ordering Quantity base on Suppliers' Lead Time) to do its Essential Role and 3Cs (Communication, Coordination and Cooperation) with Purchasing though do 3Cs first with Production.

e.3. Number of Transactions Per Hour Costing

e.3.a. Man hour (Time and Motion | Procedures)

e.3.b. Average Cost Per Transaction

e.4. Quality of Products Parameters and Performance Metrics - Cost Analysis

Performance Metrics (Quantity and Cost of Returns, Rejects, & Other Related Loses) in relation to PPS-QIP, as well as FIFO Rotation & Replenishments for Compliance and Continuous Improvements

e.4.a. (PPS) Product Preservation Standard Parameters and its (QIP) Quality Inspection Program Compliance Report

(a) Spot Audit before any withdrawals preferably

(b) Or upon withdrawal | issuance though may incur multiple handling cost

Note for Outlet receiving from Logistics Van - in the presence of the Customers

e.4.b. FIFO (First In - First Out) Lay-Outs to ensure Quality Consistency of SKUs to prevent loses due to rejects and spoilage

(a) Economical Floor Lay-Out Process Flow

a.1. From Receiving of RAW MATERIALS & SUPPLIES (Cut-Off Time to Optimize Yield Mileage over Man power time and motion, etc.) to Queue | Piling Standard and Proper Tag, FIFO Rotation and Replenishments [Items in Queue Piles will only be handled to the Warehouse Rack Shelving (Top Most or Nearest Receiving Door Stocking Area for Last-In, Last-Out)

a.2. SKU FIFO Rack Levels Flow (Bottom for Issuance - oldest stocks though within acceptable Shelf Life Parameters for Factory Plant)

a.3. SKU BIN (Standard shelf allocated column) Pile System - Innermost are supposedly for Last Out

a.4. From Preparation of picking for Issuance, handling, then to proper turn-over floor lay-out

Diagrams, Illustrations in Specific Post or Wall as Guide | Bulletin Board

e.5. Inventory Management Cost Analysis

(a) Daily Cut-Off of Ending Inventories Cost (Quantity per SKU) base on Lead Time from its Suppliers.

(b) Percentage of used storage space from the entire storage cost

d.6. Other WRM&S costing that will also include Over Time Pay

(f) Many More in Cost Analysis for Continuous Improvement of Quality, Productivity and Efficiency for Profit and Growth

CASH FLOW ANALYSIS (with Bank Reconciliation preferably weekly in order to minimize loses)

Same Format with P&L

BUDGET & CONTROL MANAGEMENT TO CASH FLOW SCHEDULES

Same Format with P&L

INTERNAL BUSINESS PROCESSES (IBP) |

PROCESS ROLL-OUT PLAN

* CPA (Critical Path Analysis), PERT (Performance Evaluation and Review Testing), T&M (Time & Motion) - GC (Gantt Chart) | PARAMETERS for Standard Quality Yields Mileage from Usage of Inventories, Man Hour, Utilities and Facilities, including Performance Metrics:

(1) Economical Physical Lay-Outs (U formation Floor Lay-Out including FIFO Rotation and Replenishments, FIFO Racking (Shelving or Pallet Position) Systems, Standard Piling System per SKU, Micro Units' Working Tables, Handling and so on)

1.a) Standard Piling (Pallet, Boxes, Sacks, Etc) System Per SKU for easy counting by the turn-over of Accountability

1.a.i. Number of Quantity Packs per Level & Lay-Out like 3 (vertical) X 2 (horizontal) that will fit into a 5' X 5' Pallet as an example for easy counting with out holding and as well as for stability when piled (height wise)

1.a.ii. Number of Levels (height) that will fit the Rack Shelf Slot though just right so not to fall

1.a.iii. Tag : Item SKU Code | Product Name | Total Quantity | Shelf Life Date | Piled by - name and signature with date and time

1.b. Training Program (Process Roll - Out Plan)

1.b) Standard Rack Shelving (BIN) - Bin Card per SKU

NOTE for PHARMACEUTICAL STORES, since direct display selling usually

(a) Each Product has at least 3 SKUs.

SKU1 for Mother Box = of SKU2 quantities.

SKU2 for Sheet Medical Tables for example = of SKU3 quantities

SKU3 for Tables (loose pieces)

(b) ALL SKUS IN ONE COLUMN SHELF (STANDARD).

INNERMOST ARE THE PILE OF SKU1.

MIDDLE ARE THE SKU2 In an OPEN BOX.

SKU3 ARE THE LOOSE PIECES in a FRONT OPEN BOX.

POLICY:

AUTHORIZED TO OPEN THE BOX OR CUT THE SHEETS.

WILL ONLY OPEN | CUT THE SHEET INTO LOOSE PIECES WHEN LESS THAN ONE SHEET.

GONDOLA NEAREST CUSTOMERS ARE TH FAST MOVING PRODUCTS WITH VOLUMES

1.c) Standard Racking Flow System per SKU Pile

(2) Each Micro Unit (Assembly) Personnel's Proper Posture, Flow of Movements, Standard Position of Materials (either left to right or the other way around depending in the Macro Process Flow (U-Formation - from Raw to WIP then to Finish)

* Process Flow Charts involving Balance Organizational Structures (Command Accountability Chain and Cross Functional Management cascading down to each Micro Units);

Control Forms Templates (number of Copies) | crucial contents with Signatories (reported by | checked and validated by | Approved by | Received by) with Cut-Off Time, Attachments of Supporting Documents in proper sequences (may cover photos and videos), Materials and Inventories, Equipments and Machines, IT Systems for accurate and real time MIS from Raw Data Encoding (may use Excel Linked Files), Training Programs, Check List, Tally Sheet Turn-Over, Diagrams and Illustrations for Guidelines (Posted to Section Wall or Post), Policies, etc.

1. Organizational Processes for an Efficient and Efficacious Supply Chain Management (SCM) involving the Command Accountability Chain and Cross Functional Management cascaded down to each Micro Units.

SCM BALANCE Organizational Structure (Command Accountability Chain and Cross Functional Management including the cascading up to their respective Micro Units) with Each Ones' KRAs, Key Functions and KPI-SMART Parameters and Metrics

(a) Supply Chain Manager - reports directly to the General Manager (GM does the SCM in a SME scale)

(b) Officers from Sales | Marketing | National Operations (Stores Chain - Regional, and Areas Officers)

(c) Officers from Factory Plant from Plant Sr. Manager, Logistics, Warehouse Finish Goods, Production, Warehouse Raw Materials and Supplies

(d) Purchasing Officer

(e) Finance Officer

(f) External Customers (Distributors, Dealers, Retailers, End Consumers)

(g) External Suppliers for Products (Trade), Raw Materials and Supplies, Equipments, etc. (may include 3rd party Logistics)

1.a. Develop SCM-EOQ (Economical Ordering Quantity) System preferably with Auto - Notification via email, text, viber, OneNote ... as to Ordering Point (for Purchasing of Raw Materials and Supplies | Production for Finish Goods Requirements) base on each Department's Lead Time (Both External and Internal Customers & Suppliers), Capacity (Logistics | Warehouse | Production) and subject to Validation and Approval by the SCM upon close coordination with the Revenues Center Group's KPI-SMART (Sales, Marketing and Operations Officers) Strategies and Noted by the General Manager and or COO (Chief Operating Officer)

1.a.a. Both External and Internal Customers & Suppliers

1.a.a.1) External Customers (Real Customers who place the orders and pay)

1.a.a.2) External Suppliers (Real Suppliers who delivers and collects)

1.a.a.3) Internal Customers (Departments: Operations, Sales, Marketing, Business Developments, Finish Goods Warehouse, Logistics, Production, Raw Materials and Supplies Warehouse, QC, R&D, QA, Purchasing)

SCM - EOQ FORMAT - Excel

Columns: Lead Time (Number of Days) of both the External and Internal Suppliers & Customers | Quantity of Orders preferably in Economics of Scale (Auto Computed from Average Daily Demand though rounded off to highest)

R = Row in Excel

R1: Retailers (Per Branch) - Stores Chain per Area or Dealers | Dealers in a Region | Distributors by Region

Area Weekly Route Schedules / Drop System

R2: Operations | Sales | Marketing -

R3: Logistics

R4: Warehouse Finish Goods | QC Dispatch, QA

R5: Production | QC, QA

R6: Warehouse Raw Materials and Supplies | QC (PPS-QIP), QA

R7: Purchasing

R8: Finance

R9: Suppliers

PROCEDURES

1: How long will it take for a Retail Store's Officer (check and validated) to have its' Purchase Request be approved by their AREA OPERATIONS (Stores Chain) Head? How about the Noted by Regional Officer?

Then to Area | Regional OFFICE PURCHASING for PO to SUPPLIER - How many days for that Retail Store to Receive the deliveries?

2. Excel Raw Data File - Columns

2.a. Supplier's Master List:

2.a.a. Code

2.a.b. Supplier Company Name

2.a.c. Address

2.a.d. Contact Details: Account Officer, Email, Cellphone #s, Office Telephone #s, Viber, etc.

2.a.e. Items (Products), Codes, Specifics (Product Preservation Standard including Shelf Life Parameters | Technical Specifications), Packaging, UOM, Unit (Piece) and Package Price

2.a.f. Credit Terms and Limits

2.a.g. Lead Time (Maximum), and Weekly Schedules (and time parameter receiving)

2.a.h. Minimum Ordering Quantity

2.a.i. After Sales Services | Return Policies | Warranties

2.a.j. Remarks

What are the attachments (supporting documents)? Inventory Flow Report, Purchase Requests, etc. - via IT (email, OneNote, Text, Viber)

OneNote is effective and efficient to Organize, Orchestrate, and Oversee Cycle in each particular Team in my experience. I don't need to open my email, input concerned | involved SCM group, attached e-files and send.

Just ensure the concerned party or parties are grouped in the OneNote to sync whenever there is WIFI in reference to the particular KPI-SMART 3Cs (Communicate, Coordinate and Cooperate) with Cut-Off Time.

1.a.b. DAILY INVENTORY FLOW REPORT (Excel Link)

Warehouses: Finish Goods, WIP, Raw Materials and Supplies

In: Factory Plant, Regional Distributors, Area Dealers, Area Retailers

Packaging (A, B, C) - Packaging per Sheet

How many Pack B in Master Box A?How many C (pieces) in Pack B?

Piling Capacity of Packaging

INVENTORY FLOW FORMAT - WAREHOUSE FINISH GOODS (WFG)

1.a.b.1) Item SKU Code

1.a.b.2) Product Name

1.a.b.3) UOM: Cartons (total pieces),Sacks, etc.

1.a.b.4) BEGINNING (from previous working day's ending balance)

1.a.b.5) IN-FLOW (from In-House Production Partial Transfer | Suppliers - trade products)

1.a.b.6) OUT-FLOW 1 (Sales)

1.a.b.7) OUT-FLOW 2 (Rejects)

1.a.b.8) Ending Balance (Auto - Computed)

1.a.b.9) Actual Count (from Tally Sheet - optional excel in tablet or iPad | Inputed by Operations Auditor)

1.a.b.10) Number of Days Supply - Auto Computed (from Daily Average or rounded off to the highest Demand Periodical Trend with adjustments from Sales | Marketing | Operations Officers and approved by Warehouse Manager, Noted by the Sr. Plant Manager, cc Production Officer & Warehouse Raw Materials and Supplies Officer, SCM & GM - inputed by Authorized Staff in the System) with Ordering Point Notification in System (color coded)

1.a.b.11) Ordering Quantity - Auto Computed base on both Internal Supplier's (Production - weekly cut-off) and External Supplier's Lead Time

1.a.b.12) Remarks

NOTE

Set a standard Physical BIN in a shelf for an Item SKU pile. Each shelf has several bins in the same category.

The sequence set in the physical lay--out, will be the same sequence of items in the Tally Sheet or Table Excel for easy counting and tallying

(A) TRADING COMPANIES | PHARMACEUTICALS | CONVENIENCE STORES

1. Plainly NO QC - Production

1.a. IN-FLOWS from Suppliers (refer Warehouse Raw Materials and Supplies below)

1.b. OUT-FLOW 1 to Sales

2. With QC | Production like replacement of parts, cooking - treat this like sample template above and procedure below

(B) RESTAURANTS (QSR & Fast Foods - UOM by Single Served Packs or Weight per Serving | # of Servings per Tray) and applicable to CONVENIENCE STORES. 1. Per FREEZER | CHILLER DOOR although Format should have more columns (number of transactions in receiving | issuances a shift or day) for ... 1.a. IN-FLOWS (normally once a week receiving from Suppliers for economical use of Man Power Resources though depends in the STORAGE Capacity) 1.b. OUT-FLOWS 1 to Sales

PROCEDURES:

1. Excel Raw Data Files for linking such as Master Products List. Note to have ONLY ONE STANDARD for Product Name with size | group or SKU (Category-Item) code. See to it that ITEMS are sequenced accordingly per Category Master List. And this follows in the LINK FILES. May put the Best Sellers first per Category.

1.a. Production's Partial Transfer | Suppliers (Traded Products) eFile to IN-FLOWS in batches per day

1.b. SO (Sales Orders) as support to SI (Sales Invoices) eFiles to OUT-FLOWS 1 per day

1.c. BO | Rejects Reports | RS (Return Slips) eFiles to OUT-FLOWS 2 per day

1.d. Actual Count Tally Sheet if in soft copy using Tablet

1.e. Average or Rounded off to the highest Daily Demand

1.f. Production Weekly Cut-Off Lead Time (Lot - Minimum Batches for Cost Efficiency)

NOTE THAT IN EXCEL LINKED FILES SYSTEMS,

1. YOU CAN CREATE DATA ENTRY (TRANSACTIONAL) FILES AND LINKS TO AUTO-GENERATE REVENUES, COST OF GOODS SOLD, FIXED AND VARIABLE COSTING, CAPEX, PROFIT TO ROI.

2. INVENTORY MANAGEMENT ANALYSIS (Kilos, Quantity of Packs, Peso, Percentage of Ending Balance Over Sold Projection for the following month) like Daily, Weekly, Monthly Ending Balance Analysis

3. Others

DAILY WFG INVENTORY FLOW eREPORT

(notification and action plan in 3Cs via text, email, viber & call including OneNote)

1. Sales Officer - specifically to determine what SKUs Ending Balance that need to push and strategize, as well as monitoring the Sales Metrics of each SKU per Category or Industry

2. Operations Officer - specifically to determine what SKUs need to be pushed and strategies. Close Communication, Coordination and Cooperation (3Cs) with Sales Office and probably with Marketing Officer.

3. Operations Auditor - checks and balances tangible items from report and supporting documents

4. Warehouse Finish Goods In-Charge - to closely 3Cs with Sales Officer on Goods Available For Sale, Logistics In-Charge for deliveries the following day (Cut-Off Time), and Production Officer in order for the latter to plan

5. Production Officer - to monitor Inventory Flow Metrics. Close 3Cs with WFG IC (In-Charge)

6. Plant Manager - to monitor Flow of Inventory Metrics, including Sales, Production, etc. and ensures 3Cs and 3Os Cycle of Management to prevent or minimize loses, idle time, multiple handling, and others

7. Purchasing Officer for Trading Products - close monitoring and 3Cs with Officers from Sales and Operations for Plans, as well as the Warehouse Finish Goods Head

8. General Manager - a link in OneNote or email with notification for 3Cs to ensure smooth flow of the Business

INVENTORY FLOW FORMAT - WAREHOUSE RAW MATERIALS and SUPPLIES (WRM&S)

1.a.b.1) RM&S - Item SKU Code

1.a.b.2) Item Product Name

1.a.b.3) UOM: kilos, pieces

1.a.b.4) BEGINNING (from previous working day's ending balance)

1.a.b.5) IN-FLOW (from Receiving Reports - Deliveries from the Suppliers, supported by its SI | SO & our PO)

1.a.b.6) OUT-FLOW 1 (Production)

1.a.b.7) OUT-FLOW 2 (Rejects - Return Slips to Suppliers | BO Slips)

1.a.b.8) Ending Balance (Auto - Computed)

1.a.b.9) Actual Count (from Tally Sheet - maybe in tablet for link | Inputed by Operations Auditor with Warehouse Manager's Approval and noted by the Sr. Plant Officer cc: Purchasing Officer, SCM and GM)

1.a.b.10) Number of Days Supply - Auto Computed (from Daily Average or rounded off to the highest Demand Periodical Trend with Allowances from Officers in Production & Warehouse Finish Goods in reference to Sales, and Operations Executives' Plans, approved by the Warehouse Manager, noted by the Sr. Plant Manager, cc SCM & GM - inputed by Authorized Staff in the System) with Ordering Point Notification in System (color coded). This too shall be approved by the

1.a.b.11) Ordering Quantity - Auto Computed base on Internal Supplier's (Production - weekly cut-off) Lead Time

1.a.b.12) Remarks

NOTES FOR RESTAURANTS | COMMISSARIES | CONVENIENCE STORES

* Per FREEZERS' | CHILLERS' Doors (preferably with specimen initial signatures and time) Format to have more columns base on shift or daily number of transactions a. IN-FLOWS from the Suppliers (normally once a week [local suppliers with 4 days lead time] for economical use of Man Power Resources though depends in the Capacity) b. OUT-FLOWS for issuances intended for Sales (to auto - tally with Quantity Sold though electronic system should convert quantity sold per items' SKUs into Inventory Usages)

* Per DRY ITEMS RACK SHELVES or BIN SKU - Bin Card or Inventory Flow Sheet (same sequence of items list in reference or base on Physical Column Piling Lay-Out

PROCEDURES:

1. Excel Raw Data Files for linking such as Master Raw Materials and Supplies List.

Note to have ONLY ONE STANDARD for Item Product Name with size | group or SKU (Category-Item suck as Chicken Quarters) code. See to it that ITEMS are sequenced accordingly per Category Master List. And this follows in the LINK FILES. May put the Fast Moving with Volume first per Category.

1.a. RR (Receiving Reports) eFile to IN-FLOWS (supported by Suppliers' SI and your PO)

1.b. Production Request Slips (PRS) eFiles (tally with Log-Book or Hard Copy File) to OUT-FLOWS 1 per day

1.c. BO | Rejects Reports eFiles to OUT-FLOWS 2 per day

1.d. Actual Count Tally Sheet if in soft copy using Tablet

1.e. Average or Rounded off to the highest Daily Demand with allowances base on Sales, Marketing and Operations Officers.

1.f. Suppliers Cut-Off Lead Time (usually weekly for local, while from importation will depend plus custom lead time)

DAILY WRM&S INVENTORY FLOW eREPORT (notification and 3Cs action plan via text, email, viber & call, OneNote)

1. Production Officer - specifically to determine what SKUs Ending Balance for their planning, as well as 3Cs on SKUs or Items needed particularly when Sales Department has plans to increase sales

2. Operations Auditor - checks and balances tangible items from report and supporting documents

3. Purchasing Officer - specifically to monitor movements and SKUs ending balance or Number of Days Supply base on Suppliers' Lead Time as key reference for determining quantity to purchase from WRM&S's Purchase Requests. Maybe to increase, decrease or hold temporarily or cancel. Close 3Cs with WRM&S Head or IC. Including Suppliers' Items Quality, Delivery Performance, and after Sales Services

4. Warehouse RM&S In-Charge - to closely 3Cs with Purchasing Officer on Items to purchase and when expected to receive, and Production Officer for their production (Cut-Off Time) schedules

5. Purchasing Officer - 3Cs in relation to Suppliers' Items Quality, Delivery Schedules and After Sales Services

6. Plant Manager - to monitor Flow of Inventory Metrics, including Production and Suppliers' Quality and Delivery Performance, as well as after sales services

7. General Manager - to monitor Inventory Flow Metrics in relation to Finish Goods Movements particularly sales requirements

ORGANIZATIONAL CAPACITY | Learning and Growth

TQM (as an Approach to Management that Embeds Awareness of Quality in All Organizational Processes. Improving process efficiency brings about many benefits in terms of Costs & Time)

*Process Roll - Out Plan IMPLEMENTATION Guidelines including Hands-On Training

SCM HANDS-ON ON THE JOB TRAINING PROGRAM

(Limited Only to those mentioned above in the 3 Perspectives of BSC KPI-SMART)

1. OBJECTIVE | Purpose - Critical Success Factors | KRAs of the Training Program

1.a. That all involved Internal Resources (Command Accountability Chain and Cross Functional management up to cascaded Micro Units Personnel) will be knowledgeable, and skilled to do their part in the Right Way at the Right Time in the Right Place. Includes close Communication, Coordination and Cooperation. Moreover to the Management, the Organizing, Orchestrating and Overseeing to ensure or at least minimize the impact to the Company and costs.

The involved organization shall have to see to it that Inventories are always available for timely delivery based on promised Lead Time in reference to Logistics' Master Route Plan per Week, Bi-Weekly and Monthly

Minimize loss of opportunity to sell, as well as over-stocking that will lead to Spoilage and Cost of Money

2. SCM TRAINING Program

An In-Depth Step By Step Organizational Processes concerning All Involved from both Internal and External Suppliers and Customers

Being able to strictly implement and apply the SCM Protocols consistently.

The Author is taking this opportunity to train the READER in his best here and here it goes.

Here's SOME QUESTIONS & GUIDELINES IN ORDER TO DEVELOP THE TRAINING PROGRAM limited to the INTERNAL BUSINESS PROCESSES indicated above, The Training METHODS, and THE Training FRAMEWORKS

2.a. What do the involved SCM Organization need to know?

(a) That there is an Organizational Processes Standards in order to have inventories available for timely delivery so to minimize loss of opportunity to sell, and over-stocking that will lead to spoilage and cost of money.

(b) How is the Mechanics? And How To ORGANIZE the TEAM?

b.1. Command Accountability Chain and Cross Functional Management up to cascaded Micro Units Personnel Structure

b.2. Each Ones KRAs, Key Functions, and KPI-SMART Parameters and Metrics

b.3. Procedures including the Excel Tools and How it works

(d) ORCHESTRATE each one base on their Key Functions, the KRAs, and the KPI-SMART Parameters and Metrics

(e) OVERSEE by closely guiding, mentoring, and coaching in the SIMULATION.

(f) Evaluates and Analyzes with the concern from time to time where to improve. Plan the courses of Actions. Use BSC KPI-SMART Framework. For Sample, Click https://stangsanto.wixsite.com/kpi-smart/frameworks

2.b. What Protocol to ensure compliance?

(a) If you are the General Manager, what Metrics do you need to see and at what time? From whom? What if did not do? What corrective actions to take?

(b) If you are the SCM, what Metrics do you need to see and at what time? From Whom? What if did not do? What corrective actions to take?

3. What MATERIALS are needed in the Training including the Simulation? Budget?

4. What Facilities are needed in the Training including the Simulation? Budget?

5. Set Up the Training Schedules for the Management and the Trainees

6. Preparations

7. Post Evaluation for improvements

A. TRAINING for the TRAINERS

1. Objectives | Purposes

1.a. To equip, develop and enhance the Leadership of the Trainers (the Command Accountability Chain and Cross Functional Management)

1.b. Preparing the Officers in closely preparing their subordinate team in the Simulation

1.c. Others

2. SCM Trainers' Program Covers

2.a. How will a General Manager trains the SCM for the latter to succeed in complying to his | her role? Moreover, how will he | she to build up its immediate subordinates to be successful? SCM's key | direct reports are:

(a) Officers from Sales and Operations

(b) Plant Executive

(d) Finance Executive

2.b. How the Operations or Stores Chain Officer trains his | her immediate subordinates (If National to Regional)? Plus, how will this Regional or Area Head equip its direct reports (Outlets Heads)?

2.c. How the Plant Executive will build up his | her direct reports such as the Warehouses Manager, Logistics Officer, Production Manager?

3. Who are involved?

(a) Balance Command Accountability Chain and Cross Functional Officers up to cascading to their respective Micro-Unit Personnel

a.1. General Manager

a.2. SCM

a.3. Sales Manager

a.4. Operations Managers (National | Regional | Areas), Retail Outlets' Heads

a.5. Marketing Manager

a.6. Sr. Plant Manager

a.7. Logistics In-Charge

a.8. Warehouse Finish Goods In-Charge

a.9. Production Manager

a.10. Warehouse Raw Materials and Supplies In-Charge

a.11. Purchasing Manager

a.12. External Suppliers

a.13. QA and QC Staffs to ensure Quality Products

(b) What are each ones KEY RESULTS AREA? KEY FUNCTIONS? KPI-SMART PARAMETERS AND METRICS with Cut-Off Time? Comprehensive Job Description Contract

4. The In-depth Method (Step By Step) to address the following ...

(a) What each one has to ensure ahead of time base on the need of its External and Internal Customers? When? Where? How?

5. How to ensure compliance?

6. Materials Needed prior to Simulation | Implementation

6.a. Process Flow Charts

6.b. Forms (# of Copies), Specimen Signatories with Cut-Off Time

6.c. Attachments required in sequence

6.d. SoftWare for Encoding

6.e. Concerned Officer's MIS (linked from raw data entry if Excel)

6.f. Economical Lay-Outs for Setting Up

6.g. etc.

7. Facilities Needed

7.a. Training | Conference Room

(a) PC or Laptop

(b) Video to document and for eManual to be used for future refresher course training

7.b. Actual Site/s Simulation (refer number 2 above)

8. Others such as evaluation analysis ...

B. TRAINEES (Micro Units)

Trainers are Coached | Mentored in equipping, developing, enhancing the Trainees (Micro Unit Personnel). Their immediate subordinates.

b.1. What are their KRAS? KEY FUNCTIONS? KPI-SMART PARAMETERS AND METRICS?

b.2. Simulation

b.3. Post evaluation analysis for improvements

CSF | KRA 2

Customers

(Distributors, Dealers, Retailers and End Consumers)

2. Delivery of Consistent Quality Products

Internal Business Processes (IBP) |

TQM (Total Quality Management) - as an Approach to Management that Embeds Awareness of Quality in All Organizational Processes. Improving process efficiency brings about many benefits in terms of Costs & Time. 2. Organizational Processes for an Efficient and Efficacious Quality Assurance and Control from Suppliers' delivery up to deliveries to Customers and so on in order to ensure Quality Products.

2.a. Each Staff's Parameters (Upper and Lower Control Limits) and Metrics

2.b. Each SKU's PRODUCT PRESERVATION STANDARDS (Parameters) with QUALITY INSPECTION PROGRAM (includes the Validation of the Head) and Performance Metrics

Organizational Capacity |

Learning and Growth - TQM (as an Approach to Management that Embeds Awareness of Quality in All Organizational Processes. Improving process efficiency brings about many benefits in terms of Costs & Time)

*Training Programs of all of the above IBP.

CSF | KRA 3

Customers

(Distributors, Dealers, Retailers and End Consumers)

3. Develop NEW Accounts to increase Sales and Collections. Also NEW Products SKUs particularly for the Existing Markets.

Internal Business Processes (IBP) |

TQM (Total Quality Management) - as an Approach to Management that Embeds Awareness of Quality in All Organizational Processes. Improving process efficiency brings about many benefits in terms of Costs & Time. 3. Organizational Processes for an Efficacious Marketing and Sales Management & Operations to Increase Sales

Organizational Capacity |

*Training Programs of all of the above IBP.

CSF | KRA 4

Customers

(Distributors, Dealers, Retailers and End Consumers)

4. After Sales Services (CRM)

Internal Business Processes (IBP) |

TQM (Total Quality Management) - as an Approach to Management that Embeds Awareness of Quality in All Organizational Processes. Improving process efficiency brings about many benefits in terms of Costs & Time. 4. Organizational Processes for an Efficient and Efficacious AFTER SALES SERVICES for Customers' Retention and Continuous Patronage

Organizational Capacity |

*Training Programs of all of the above IBP.

CSF | KRA 5

Customers

(Distributors, Dealers, Retailers and End Consumers)

5. Are Customers knowledgeable about the Products? Requires Materials and or Training Programs particularly for perishable foods and beverages Product Preservation Standards and the Quality Inspection Program to ensure Products are in high quality condition upon receiving, stocking and issuances for sales and collection

Finance | Corporate Planning (a Strategic Management Tool to Map out a Course of Action that will result in Revenue Growth & Increase Profits by making Internal Operations more effective & productive) 5. Budget allocation. However, Customers maybe required to pay part or full depending on the Reason for the Training

Internal Business Processes (IBP) |

TQM (Total Quality Management) - as an Approach to Management that Embeds Awareness of Quality in All Organizational Processes. Improving process efficiency brings about many benefits in terms of Costs & Time. 5. Develop an Organizational Processes for an Efficient and Efficacious Periodical Training Programs for the Customers (Distributors, Wholesalers, Dealers, Retailers) to ensure Quality Products Consistency to reach the End Consumers

Organizational Capacity |

*Training Programs of all of the above IBP.

CSF | KRA 6

Customers

(Distributors, Dealers, Retailers and End Consumers)

6. Are the Prices Competitive?

Finance | Corporate Planning (a Strategic Management Tool to Map out a Course of Action that will result in Revenue Growth & Increase Profits by making Internal Operations more effective & productive) 6. Are the Information accurate and real time (cut-off 24 hours for transmittal?) for Price, Cost and Profit Analysis (Products, Logistics and others related).

Internal Business Processes (IBP) |

TQM (Total Quality Management) - as an Approach to Management that Embeds Awareness of Quality in All Organizational Processes. Improving process efficiency brings about many benefits in terms of Costs & Time. 6. Sales, Operations, Marketing and Business Development's Systems that provides real time and accurate Competition Analysis Report to the General Manager and or COO. GM | COO and Finance Officer to study various costing (production, etc) for efficiency and to produce more Quality Yields Mileage from Usages of Time, Inventories, and others related.

Organizational Capacity |

*Training Programs of all of the above IBP.

CSF | KRA 7

Customers

(Distributors, Dealers, Retailers and End Consumers)

7. Can the Customers pay in cash? Will Terms and Credit Lines affordable to the Company base on Cash Flow and Calculated Risk (Credit Investigation)?

Finance | Corporate Planning (a Strategic Management Tool to Map out a Course of Action that will result in Revenue Growth & Increase Profits by making Internal Operations more effective & productive) 7. Preferably Cash of Course particularly those who did not pass the CI. Terms and Credit Lines per Customer will depend on the CI findings. Always ensure all Sales Orders (POs) from Customers with Credits will have the Clearance from the Credit and Collections Staff that is also validated by the Finance Executive for Check and Balance.

7.a. Providing Credit Terms and Lines will definitely affects the Cash Flow.

* Ascertain the Survival and Financial Exposures. It is essential and crucial to have a very conservative, accurate and real time financial metrics such as Financial Statement, Balance Sheet, Cash Flow Schedules including Accounts Receivables, and Payables.

* Monthly Bank Reconciliation Analysis is crucial also.

* Preferably weekly cut-off (leanest day) Performance Metrics so that you can minimize loses incurred within that week. With these Reports, use this in budgeting and management control.

** Format for

(a) revenues categories such as Main Foods, Beverages, etc to determine which needs strategies to increase your sales and collections. Be specific per SKUs as well.

(b) for Cost Centers - have OPERATING EXPENSES (sub-categories in FIXED & VARIABLE costs), and CAPITAL EXPENSES (for growth such as to increase capacity to sell). Fixed Operating Cost covers your Overhead even you don't have sales and collections.

(d) ROI

(e) RE (Retained Earnings) and Dividends

Internal Business Processes (IBP) |

Organizational Capacity |

*Training Programs of all of the above IBP.

CSF | KRA 8

Customers

(Distributors, Dealers, Retailers and End Consumers)

8. Others