Module: Service level management¶
Executive summary¶
Service level Indicator (SLI) is a measure of logistics performance indicating the level of customer service. SLI indicates the degree of satisfaction of demand for specific products. It is reported in percentage with a maximum value of 100%, which reflects that the demand for the item was completely satisfied.
The basis for computing the real level of SLI is the module Analysis of stockout.
SLI is a module following the ABC analysis. A different level of SLI can be set for each segment of ABC analysis. SLI can be set at any level (warehouse, branch, product category, etc.). However, if the SLI is changed at a lower level of the structure, such change will not be reflected at higher levels and will be retained only for the selected subcategory.
SLI and management decisions¶
Indicator SLI in the STOCK system is the final indicator of a supply chain performance. It is set by an initial management decision on the required level for individual ABC categories and/or for specific products.
It should be borne in mind that a decision to change the SLI settings will have repercussions on all the related factors affecting availability (stock levels, production, transportation, labor costs, etc.). Setting the SLI too high may increase costs for maintaining such a high stock quantity able to meet the set SLI.
Functional description¶
Setting the service level¶
Using Dashboard¶
Service levels can be set directly in the module Dashboard. Given that it is one of the crucial settings in STOCK, the user sees it immediately upon login. For each category, you can set the required Customer Service Level.
The following screenshot shows the setting “Effective” for the whole company. The whole setup is tinged in red, since the service level for the given level of the hierarchy is set (and not inherited from the parent settings).
The next screenshot shows the SLI settings for a lower tree level. The setting is light-colored, meaning that the setting was not specified at this level, but it was inherited from an upper one:
Settings and overview in System settings¶
If you want to delete some of the settings and exceptions, or if you want to display an overview of exceptions, then Service level setting is used.
Delete button deletes the exception, the Go button lets you move to a specific higher level of the hierarchy on the Dashboard: there, you can change the settings.
Tracking service levels¶
For tracking SLI, the best option is the report Evaluating stockouts.
Extensions¶
Easy setting of Service level¶
When you work actively with SLI and you need many different settings for different warehouses and categories, the basic SLI settings might turn outs insufficient.
And that’s why we’ve developed this extension. Thanks to this, for a warehouse level and a specified level of a product hierarchy, you can set SLI for all ABC categories. The setting can then be deleted or edited.
At the standard SLI setting on the dashboard, there appears a warning that at the given position, you cannot modify the settings anymore and, thus, that the present extension is required:
