What the heck are Supply Chain KPI’s?
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Here’s a great video on Supply Chain KPI’s which acts as an excellent introduction to the subject. As a reminder, KPI’s are a crucial part of a continuous improvement journey. Measuring a comapany’s performance can be achieved by various routes. Many organizations choose a route that is suitable for them, I.e. Specific measures pertaining to their business or niche. When developing KPI’s businesses will usually focus on those numbers that are important to them (typically they drive key activities or behaviours that are central to the organizations success).
KPI’s are typically used to set a target or objective and then provide a way of measuring the gap between the target and then achievement. The KPI results should then drive a series of actions to close that gap. KPI’s then get reviewed periodically (weekly/monthly) to drive improvement.
When it comes to Supply Chain there are hudreds to choose from, the Supply Chain Council has identified over 200 KPI’s that could be used (indeed deemed critical) there are certain core KPI’s that are more important than others and as ever it’s important to choose ones that help drive your business forward (I always remember the old adage less charts more parts I.e. Don’t drown in data – make sure they work for you.
Anyway – here’s the video. My personal favourite line in it is KPI’s help bridge the gap where everyone in the room is right unless the boss is in there. We’ve all been there, right?
