Key Aspects of Performance Management Model
In an efficient supply chain performance management model business strategy should be aligned to operational goals through tactical goals. The performance scorecards metrics, reports and dashboards across the organization’s functions like procurement, manufacturing, sales and distribution, human resource and finance shall be linked to organizational roles. The core processes-Plan, Source, Make, Deliver & Returns, shall be balanced across functions and other perspectives. The system shall provide utmost flexibility and ability to benchmark performance with external peers and internal targets. It should also provide a framework for alerts and exceptions in the performance on continuous basis which will help managers to take corrective action for any future mishap in the organization well in advance. The system should provide a framework for guided analysis and root cause discovery for any deviation in the performance or exceptional outcomes.
Key Components of SAP Supply Chain Performance Management
Built based on the Supply Chain Operations Reference, or SCOR model, SAP BusinessObjects Supply Chain Performance Management is a complete solution that:
- Provides full visibility into end-to-end supply chain processes through key performance indicators (KPI) framed within a hierarchy of KPI’s, perform root-cause analysis and identify bottlenecks
- Understands the relationships between KPI’s across different supply chain functions and perform trade-offs to balance financial and operational perspectives to optimize enterprise performance and maximize profitability
- Enables supply chain personnel to identify supply chain trends and patterns and proactively mitigate risk
- Integrates with SAP and non-SAP systems
According to recent research by AMR “A Call To Action For SAP New Leadership: Shine A Light On SCM” by Noha Tohamy, and Mike Burkett, supply chain performance management represents the number one opportunity for supply chain improvements in 2010.