SCPM more than just metrics (Part 3: Is SCPM all about strategy, performance, what-if or analysis?)
In my SCPM more than just metrics (Part 2: Is SCPM all about analyzing the past?) we explored how SAP BusinessObjects Supply Chain Performance Management (SCPM) helps us to be pro-active and not just reactive by using what-if-analysis but what about action and execution of strategy and objectives?
Is SCPM all about strategy, performance, what-if or analysis? No it is not. It is about strategy to action.
Let work with an example understand how strategy to action helps us to close the loop.
The KPI POF is underperforming and after our root cause we come to a conclusion that it is because of transit damages.
The VP of Supply Chain creates an initiative ‘Analyze and address transit damages for the foods product line’ and assigns it to the logistics responsible with actions ‘Analyze why transit damages has increased’, ‘Address transit damages’, ‘Proposal to prevent it transit damages in the future’. The logistics responsible would execute on the initiative and the VP of Supply Chain can track its progress.
Using Closed Loop Collaboration in SCPM we can create initiatives and activities, assign a responsible and a target date and track its completion. Hence SCPM is also about strategy to action.
Conclusion, SCPM is about Improved Supply Chain visibility and efficiency with SCPM, SCPM is more than just metrics (Part 1: Is SCPM all about KPIs/Metrics?), SCPM more than just metrics (Part 2: Is SCPM all about analyzing the past?) and strategy to action.