27 May 2014
First and foremost. Why do we measure performance? If the answer isn’t "to get better”, then we need to think this through again. Measurement should ideally be the basis for continuous improvements, and at least make your supply chain more efficient.
Next question. Is it relevant and forward-looking? Finger pointing is not constructive. Demonstrating new ways forward and finding out the basic problems is.
And the check question – is there a risk of sub-optimization in the chain if we follow up in this way?
We see this as a flow where you see your own and your partner's activities, such as in a VMI (Vendor managed inventory). It fits perfectly with the PipeChain "three plus one" KPI. Service level and forecast accuracy go hand in hand with coverage time, and money in stock is the outcome (Effect Goal) of the first three. The advantage of the outcome is that it concentrates on things that can reach the effect and not the result when implementing changes or adjustments.
In a traditional order flow too much focus is placed on delivery precision. But put this in relation to what lies behind delivery, the actual need. What’s the most important? It can be an internal forecast accuracy or external order accuracy I share with my partner.
That's when it might spark your supply chain – control of Cause and Effect.
We see this entire area as important and it happens a lot. For example, we expanded our dashboard and added more report screens to make it even easier to find the correlation between Cause and Effect.
Contact us and we’ll tell you more.