| > | | | | This is a short sighted approach and the reality does |
| In this brief article we are going to touch upon how | | | | not match the theory that all of this information |
| you can maximize your SCM metrics in order to | | | | being put in front of an SCM management team is |
| deliver the competitive advantage that you really are | | | | actually going to help them. |
| looking for. | | | | Following Pareto's Principle and focusing on the 20% |
| The majority of KPI dashboards are in fact | | | | of metrics that are actually telling you how 80% of |
| overloaded with metrics and the key to getting the | | | | SCM business performance is actually being |
| most out of your SCM intelligence is in choosing the | | | | generated does deliver better results. |
| most appropriate metrics that are key to providing | | | | The issue will become what are you going to use? |
| decision makers with the necessary information to | | | | Concentrating on the basics will provide a far better |
| deliver informed decisions when they need it. Using | | | | SCM dashboard to equip managers to focus on the |
| dashboards that are carrying large numbers of KPI's | | | | real drivers of the supply chain process. Remember |
| does not deliver information to SCM managers so | | | | we are looking to focus on cost reduction, better |
| they can make optimal decisions. Focusing on the | | | | supplier management, shorter delivery times or |
| key metrics that identify the main source of SCM | | | | better on-time delivery to customers, improving the |
| business performance is vital and reducing the | | | | efficiency of the manufacturing chain and being able |
| number of metrics used allows managers to | | | | to distil this in a format that presents information |
| understand better and far more intuitively what a | | | | against pre-set indicators and historical trend data. |
| metric is actually trying to tell them. | | | | That all sounds great but let's have some specifics! |
| "Less is more" or TMI (Too Much Information) are | | | | Aim to present the following and little else on your |
| two of the comments that you will hear from SCM | | | | SCM dashboard: |
| experts who truly understand the components of | | | | - Production on Time and Complete- Supplier |
| the business supply chain from procurement, | | | | Fulfillment on Time and Complete- Perfect Order |
| processing and through to customer delivery. In the | | | | Fulfillment- Perfect Order Lead Time- Expedited |
| very recent few years, with the introduction of RFID | | | | Order Fulfillment- Customer Return Rate- Cash to |
| technology that allows tagging of containers, pallets | | | | Cash Cycle Time |
| and individual shipment items replete with a mass of | | | | These are seven KPI's that will provide your supply |
| raw data on content, models, color, specification, | | | | chain management team with the information that will |
| origination and so on , it is extremely tempting to | | | | provide them with over 80% of the indicators of SC |
| dive in and start thinking that all this data that we are | | | | performance. Look to provide more than this and |
| now routinely able to collect and collate can | | | | you are heading into information replication and data |
| somehow be manipulated to provide SCM managers | | | | overload resulting in management delays in exercising |
| with even more information that will help them make | | | | decision making power and confusion over what the |
| better and more profitable decisions. | | | | metrics are actually trying to tell you. |