In today’s increasingly complex and competitive market, organizations that effectively measure and manage their supply chain performance gain a significant competitive advantage. A structured key performance indicator (KPI) system provides a comprehensive yet focused approach, linking operational metrics directly to financial outcomes.
By aligning transparent, actionable KPIs across three levels- corporate, functional, and process – a structured system ensures a direct connection between operational activities and business results. Cascading KPIs from strategy to supply chain execution enables root cause analysis and targeted improvements, creating a clear line of sight from day-to-day operations to overall performance.
The enterprise-specific system of KPIs requires tracking along the timeline, ideally combined with a targeted and structured peer comparison of selected benchmarks. This will provide clear indications about the main levers to improve cash and cost efficiency. However, this approach is based on retrospective information and does not consider market changes, risks, and future requirements. Consequently, this should be combined with a growth strategy and the target picture development for your supply chain. Stay tuned for future “Insights” addressing this.
