Supply chain teams that succeed in implementing the right set of actionable supply chain analytics have a dramatic advantage over less performance-aware planning organizations.
April 21, 2017
The goal is to provide advanced insights that focus valuable human resources on actions that have the greatest impact.
By focusing on well-chosen real-time metrics, they proactively monitor, measure, control, and correct the key drivers of business performance.
Rather than running reports or populating spreadsheets, hoping to gain insight from past performance into where and how adjustments can be made to improve future efficiency, they infuse the entire supply chain management (SCM) system with the ability to sense and correct deviations from optimal performance every day. Their SCM is built on a performance management architecture.
A good performance management system translates the company’s plan, which ideally spans supply, demand and finance, to the appropriate level of aggregation and time horizon.
When built into the fabric of the supply chain, the performance management function puts actionable information at the fingertips of planners, senior executives, and stakeholders across the enterprise. Performance management converts huge repositories of data into easily consumed knowledge that accelerates your timeto- alert, time-to-resolution, and prioritization of high-value actions.
It provides vital input to the S&OP process, and helps find the “needle in a haystack” root causes of problems, rather than just flagging the symptoms.
To become a game-changing catalyst for supply chain excellence, performance management must become part of the supply chain “nervous system,” not “bolted on” as an afterthought.