Operational metrics are a powerful tool for businesses to measure their performance in all aspects, from financial to marketing, distribution, production, personnel-related, and sales. They provide insight into how successful strategies have been and where attention needs to be paid. An operational KPI is a quantifiable value that expresses the evolution of the business in a shorter term. They are used in different industries to track organizational processes, improve efficiency, and help companies understand and reflect on results.
In order to maximize the value of operational metrics, organizations must identify the right ones to track. This can be done by looking at historical data and adapting to current and future operational and strategic actions. For instance, receivables rotation is a KPI that financial and operations managers often use to understand how quickly the company collects its receivables. By using various types of metrics and professional operational reporting tools, companies can access more data and acquire the information needed to be successful.
Operational metrics create a dashboard with the organization's vital signs, allowing you to make decisions for more efficient and agile operations. More specifically, operational metrics provide near-real-time information about the business, while strategic KPIs show progress toward general objectives over time. This is an important indicator that you can incorporate into your logistics operations to ensure the best possible results for your company and establish a lucrative relationship with your customers. For product-based businesses, NetSuite's inventory management software makes it easy to monitor metrics such as billing, delivery time, and more, while NetSuite warehouse management software helps ensure efficient warehouse operations.
But let's start with the basics of business operations and provide the basis for analyzing its own KPIs and, at the same time, focusing on specific examples from the industry and from the company's departments that a company can use for its own development. A KPI for an operations manager is an invaluable tool that will ensure that a company's operating level works in a healthy way, and every part of the business puzzle has the means to monitor, analyze, evaluate and generate actionable information. With operational KPIs divided into 4 broad categories (financial, efficiency, utilization and quality), this template gives you a broader view of the performance of all relevant areas related to order processing.
