In today’s environment uncertainty and unpredictability dominate most Supply Chains because of complexity of the supply network, increasing globalization and a fragmented approach to solve the immediate problems rather than to look at all business functions before making a decision.
Supply Chain Costs accounts for around 40% of all company costs. The cost of logistics in emerging economies is much higher than in Europe and US due to the lack of appropriate transportation infrastructure. Hence an increased focus on efficient supply chains to reduce cost.
Also, most companies today spend a lot of time in demand generation rather than to bring about efficiencies in their supply chain. The prime focus is revenue generation and to drive demand via new product launches, marketing existing products, branding and trade promotions.
Supply Chain needs as much focus demand generation as most of this demand generated cannot be fulfilled because the product is not available at the right place, at the right time and in good condition. We must realize that to satisfy the demand we need our products to be available at the right place; at the right time and in good condition with minimal costs and to do this we need to have an efficient Supply Chain.
An efficient supply chain not only ensures that we can meet our demand but also gives us the opportunity to reduce costs and to increase our operating margins but we need answers to the following questions:
- Can we have an efficient supply chain without having a good visibility on our supply chain processes?
- Can we manage what we cannot measure?
- Can we make business decisions in isolation without having a holistic view of our business?
SAP BusinessObjects Supply Chain Performance Management (SCPM) provides end-to-end supply chain visibility, helps companies to measure the right process metrics, to track performance, to diagnose bottlenecks and to give you an overview on all business functions so that business decisions are not taken in isolation.
- SCPM uses the balanced scorecard approach to give an overview of all business functions and helps us focus on our priorities. The balanced scorecard approach provides visibility on all functions of the business with priorities.
- SCPM (An adoption of the SCOR model) delivers 400+ KPIs that a business can choose from based on their priorities and relevance. These KPIs can be used to monitor, measure and give visibility on your supply chain.
- SCPM allows companies to leverage standard definitions across the complete organization and compare/benchmark against other companies.
- SCPM uses Impact Analysis to understand the impact of related metrics (KPIs) and their relationship with one another.