Five Tips to consider when designing Supply Chain Key Performance Indicators
You can’t predict anything with 100% certainty, and your predictive power wanes the farther out you gaze. The study of KPIs over time is all about finding patterns and signals, then applying intelligence in order to make better decisions and gain wisdom.
In a previous post I focused on the pitfalls associated with supply chain KPI and metrics development. In this post, I’ll cover how businesses can improve their supply chain measurement processes by avoiding the common pitfalls by keeping in mind a few simple hints.
1) Don’t start by asking for a list of everyone’s metrics
You don’t need to create a collection of all things measurable. With massive amounts of new (and sometimes big) data being added to corporate databases every day, the permutations will grow and the questions that can be asked simply become more confusing. Start fresh and start at the top. Focus on KPIs that shed light on progress toward achieving strategic business goals.