Develop Smart KPIs to Drive Supply Chain Optimization Alignment

What KPIs Should Be Utilized?

Managing KPIs in Your SAP Supply Chain

Despite the best of intentions, strategic direction and balancing of competing concurrent goals, continues to be an organizational challenge. Increasing service levels while reducing working capital and cost are by nature, completely oppositional. And this conflict is perpetuated by goals and objectives that continually focus on each department’s own goals rather than broader organizational strategies. 

Through numerical measures, you can collect the required data and calculate aggregate values hourly, daily, weekly or monthly to compare across multiple indicators. All measures should provide alerts that trigger action when certain thresholds are reached enabled by defined maximum and minimum threshold values.

By relying on a cross-functional alignment of KPIs, you gain the ability to understand the true performance of your supply chain and can make fast organizational adjustments in your execution to achieve your strategic goals. By doing so, you can overcome competing intentions among Finance, Sales, Production, and Procurement, and align your growth goals to function as an agile organization. And that can only bode well for the competitive year ahead. 

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