SCPM is more than just metrics (Part 1: Is SCPM all about KPIs/Metrics?)
SAP BusinessObjects Supply Chain Performance Management (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.
Is SCPM all about KPIs/Metrics? No it is not. It is about the relationship between KPIs – of how one KPI impacts the other.
Let work with an example understand how the relationship between KPIs gives us valuable insights.
Perfect Order Fulfillment (POF) the KPI according to SCOR is a customer facing KPI which determines if we deliver the order at the right time and in right quantity and quality. POF is an indication of our responsiveness and efficiency.
If the KPI POF is below target it may be because we are not delivering the orders in time or not delivering the right quantity or not delivering the right quality. The underlying reason may be because of transit damages, low production schedule achievement, stock outs, violating inventory norms and so on and so forth.
Using Impact Analysis in SCPM we can analyze and arrive at the root cause of the issue. Impact Analysis in SCPM is based on the relationship between KPIs.
Conclusion, SCPM is about Improved Supply Chain visibility and efficiency with SCPM and relationship among KPIs/metrics.