The entire supply chain is full of it: Data! Data protection, data preparation, data transfer, databases – all corporate global activity is based on data, its security and usability. Data is the heart of a company and its maintenance must be a top priority.
Supply chain management – supply chain under control?
In a global economy, international production and supply chains place high demands on companies and employees in terms of flexibility, delivery reliability, sustainability, and costs. Transparency in this supply chain is the key to success and companies are increasingly developing capabilities for information and reporting on and about the supply chain.
Integrated supply chain performance management focuses on a shared understanding of supply chain goals and disciplined goal setting and execution. Key information on goal achievement must be available to all relevant stakeholders, as well as addressing key messages to executives and managers. Supply chain transparency by considering and aligning supply chain processes and technology with the organizational structure are relevant measures.
Coordinated and agreed supply chain KPIs, covering all perspectives of supply chain management and process performance indicators to enable root cause analysis in case of deviations, are further goals to be achieved.
Achieving goals through KPIs
Key performance indicators (KPIs) should structure the desired information in various dimensions such as customer service, costs, and assets. Ideally, KPIs are aligned across levels of the reporting hierarchy and are available on demand. Other supporting metrics allow a deep dive into root causes to identify irregularities.
Reality looks different
For many companies, however, a transparent and efficient supply chain is currently more of a pipe dream.
This is due to a wide variety of reasons. But all of them have one thing in common: The bottom line is that complex processes are managed incorrectly or too little. Limited or outdated technologies and software, which only determine the correct and complete data with difficulty or do not prepare it correctly, can be found in many companies. When supply chain performance measurement systems are implemented, they focus on a limited number of aspects. Most systems are isolated, static, and with metrics that are backward-looking and often not holistic in their thinking.
Often the KPIs themselves are a problem because when facts are derived into KPIs, details are dropped or root cause analysis is not properly completed. Functional organizational units have different functional requirements and usually work in silos rather than across processes. This cross-process view of issues must first be developed and implemented in the company’s processes – sometimes in the face of internal resistance. Only then can they pull together without neglecting the idiosyncrasies of each individual unit.
Last but not least, supply chain executives face a complex reporting landscape with numerous requirements to measure and calculate performance, struggle with country-specific regulations or unique supply chain management logic.
TIP: When you talk about supply chain management, you’re always talking about data management. Before it goes into supply chain optimization, data security should be taken care of and integrated into the process from the very beginning. Ask us, we will be happy to advise you: Invest in the right protective measures to protect your supply chain and valuable company data against attacks at a manageable cost.
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