Supply chain and digital management
Kouidrat Badis
Created on May 1, 2024
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Transcript
Lecturer Kouidrat Badis.
PRESENTATION
Supply chain and digital management
HR business partner(metrics related to talent, turnover and performance, health and safety.
Logistics manager, customer fulfillment manager,quality manager,supplier manager, procurement manager
Global heads, VP/director of planning, sourcing, procurement, manufacturing, customer fulfillment and quality
Stakeholders
CEO, Supply chain manager, COO, CFO
Operational management
Functional leadership
Executive top level
Metrics : business strategy and supply chain aligned.
- What are the key strategic and operational objectives for you and your specific area
- What key information do you use to determine the success of your objectives ?
- How do you measure progress ?
- What key informations do you require to support operational functions in your area ?
- How do you use this information ?
- How often does the information need to be refreshed ?
- How current does the information need to be ?
- What are your key information gaps and/or information challenges ?
- e.g : inadequate end-user analytical tools
- What information do you get today that you do not use or need ?
- Do you have confidence in the quality of the information you recieve today?
- Do you trust that the data is coming from the right source?
- How will better information help you, as an operational leader, meet your future goals/objectives over the next 3 years ?
Questions : business strategy and supply chain aligned.
Map supply chain objectives to broader business goals and identify the drivers or specific actions that are most likely to affect the achievements of those objectives.How common corporate objectives map to supply chain capabilities and further the supply chain metrics and key initiatives that enable progress against quantitative supply chain goals.
Drivers for metric selection
- SC planning
- Quality management
- Customer service
- Logistics strategy
- Operations
- SC planning
- Sourcing
- Procurement
- Manufacturing
- Logistics
- Operations
- Sourcing
- Procurement
Supply chain key initiatives
New product development
Perfect order and customer fulfilment
Reduce time to market
New product launch
Growth
% on time delivery
Customer service
Market share
Inventory management
Total supply chain costs
Reduce inventory
Assets managements
Working capital improvement
€million savings
Total supply chain costs
Margin enhancement
Supply chain metrics
Supply chain goals
Supply chain contribution
Corporate objectives
Drivers for metric selection
Include metric in dashboard
Discard metric
GO
STOP
Yes
No
GO
No
Yes
Yes
No
STOP
GO
STOP
GO
STOP
Yes
No
Can you articulate how this metric will solve the problem or support decision making on this issue ?
Determine if the problem is relevant to another audience if yes include it in a different dashboard? otherwise discard metric
Is the a problem of relevance to intented audience?
Determine if the metric provide supporting data for another metric or historical data for future analysis. Otherwise discard metric
Can you articulate the problem/issue that this metric will adress?deteriorating service quality, etc)
Begin dashboard design from audience perspective
Has the audience for the dashboard been identified ?
Decision rules
Root Cause Analysis/ Corrective Action
Diagnostic &Process Metrics
Functional Objectives & Metrics
SC IT
SC HR
Quality
Deliver
Make
Source
Service Delivery
Initiatives (Strategic and Continous Improvement°
People Management
Sustainability and Corporate Responsibility
Compliance
Health & Safety
Cash Assets
Cost
SC Objectives & Metrics
Service Delivery
Return
Profit
Business Objectives & Metrics
Revenue and Customer Satisfaction
Strategic Priorities
Responsible Use of Resources
Sales and compliant operations
Profitable, growth and ROI
Agility, Resilience, Risk Management
Customer experience and value
End to End Supply Chain Metric Framework
Source Gartner
Decision rules for metric review
Remove from dashboard
Recalibrate tolerance range
Pinpoint trouble area and prescribe corrective action
Recalibrate tolerance ranges
Keep on dashboard
Volatile, often in red range
Outperforming often in green range
Stable, often in amber range
Does the metric inform critical or operational decisions ?
Does the metric inform critical or operational decisions ?
No
Yes
Is this the only metric on the dashboard that can provide the required insight?
No
Yes
Is the metric a statutory requirement ?
No
Yes
Is the metric a reporting best practice or a requirement expressed by a stakeholder?
No
Yes
Does the metric provide supporting data for another metric or historical data?
No
Yes
Does the metric inform critical or operational decisions ?
Detailed planification
Enterprise Resource Planning ERP
Advanced Planning System APS
Transportation Management System TMS
Manufacturing Execution System MES
Warehouse Managemant System WMS