SCPM is a turnkey analytical solution for end-to-end Supply Chain Performance Management. It enables organizations to define and develop a strategy for their supply chain and manage, monitor and measure its performance near real time. It helps organizations to understand and monitor key supply chain metrics and related metrics at different levels as per SCOR framework. It consists of around 400 out of the box KPIs grouped underneath following key performance measures:
- Perfect Order Fulfillment
- Order Fulfillment Cycle Time
- Supply Chain Management Cost
- Cash-to-Cash Cycle Time
- Cost of Goods Sold
- Return on Supply Chain Fixed Assets
- Return on Working Capital
- Other Diagnostic Metrics
It also provides a user friendly interface to add, update, or edit the KPIs as per organization’s specific business need. One of the key value delivered rapidly to Organizations by SCPM is it’s of out of the box function/role based dashboards, scorecards and reports that provide visibility across all the functions of the supply chain and perform root-cause analysis.
Need for Supply Chain Performance Management
Supply chain function of any organization is becoming more and more complex today, and has too many metrics, but they lack coherence and focus. Traditional supply chains with predictable responses have evolved into complex supply chain networks dominated by uncertainty and risk Data available in enterprise systems, flat files, and excels are difficult to integrate and hence lack accuracy and consistency with lots of wasted effort of supply chain practitioners. The detailed insights and deep dive into the root cause of any issue are not possible .So the supply chain function lacks end-to-end visibility. As per McKinsey’s Survey 2008-75% organizations missing their supply chain strategic goals measured in Cost Savings, Order Fill Rates and Cash-to-Cash Cycle Times.
Given the complex nature of the modern supply chain and the massive amounts of data available, Supply chain performance management solution is the need of today’s supply chain to improve not only efficiency but also effectiveness of the supply chain. It is essential that your supply chain organization has the tools to effectively manage and improve supply chain performance. These tools need to enable supply chain managers to make decisions within strategic context and provide them with the visibility into the cause and effect relationship between operational metrics across all supply chain functions.
SAP BusinessObjects supply chain gives freedom from spreadsheets based data management which has its own challenges in terms of consistency, accuracy, ambiguity. It also enables supply chain practitioners with real time data visibility across the supply chain functions, and sve their effort for value added activities. It identifies and reduces supply chain complexities, cost, and associated risks.