SCOPS02-BP01 Define, monitor, and communicate KPIs across the entire supply chain - Supply Chain Lens
Implementation guidance

SCOPS02-BP01 Define, monitor, and communicate KPIs across the entire supply chain

To effectively manage and optimize your supply chain, it's crucial to establish a comprehensive set of KPIs that span from demand planning through to final delivery. These KPIs should be carefully selected to align with business objectives and provide actionable insights. Regular monitoring of these KPIs, ideally through interactive dashboards, allows for real-time performance assessment. Furthermore, consistent and transparent communication of KPI results to all relevant stakeholders fosters accountability and makes sure everyone is working towards shared goals, ultimately leading to improved operational efficiency, enhanced decision-making, and better alignment of supply chain activities with overall business strategy.

Desired outcome: A clear, data-driven understanding of supply chain performance at every stage, enabling proactive identification of issues and continuous improvement.

Benefits of establishing this best practice:

  • Improved operational efficiency and effectiveness.

  • Enhanced decision-making capabilities based on real-time data.

  • Increased accountability and performance ownership across supply chain teams.

  • Better alignment of supply chain activities with business goals.

  • Proactive identification and mitigation of potential disruptions.

Level of risk exposed if this best practice is not established: Medium

Implementation guidance

  • Collaborate with supply chain managers and team leads to define relevant KPIs for their respective areas, utilizing business intelligence tools and data visualization systems to create interactive dashboards. Establish a regular cadence for KPI review meetings with clear ownership assignments to maintain accountability and continuous improvement across all supply chain stages.

Implementation steps

  1. Identify key stages of your supply chain (for example, planning, sourcing, manufacturing, logistics, delivery).

  2. For each stage, define a set of measurable KPIs that align with business objectives.

  3. Implement data collection mechanisms to gather information for each KPI.

  4. Develop dashboards and reports to visualize KPI performance.

  5. Establish a regular review cycle for KPIs and communicate results to stakeholders.