Hierarchical Metrics for Supply Chain Performance Analysis PPT


This PPT slide, part of the 83-slide Supply Chain Strategy and Performance Management PowerPoint presentation, presents a structured approach to analyzing supply chain performance through a hierarchy of measures. It categorizes metrics into 3 main types: Key KPIs, Supporting Metrics, and Other Operational Measures. Each category is designed to provide insights into different aspects of supply chain efficiency.

Key KPIs focus on critical performance indicators, exemplified by forecasting accuracy as a percentage of sales. This metric aims to identify where issues may arise in the supply chain. Supporting Metrics, like the percentage of suppliers connected via Electronic Data Interchange (EDI), serve to provide additional context and support the primary KPIs. Other Operational Measures, such as the proportion of A-goods in inventory, offer further granularity to the analysis.

The slide outlines the objectives associated with each type of measure. For instance, the goal of Key KPIs is to pinpoint the location of problems within the supply chain, while Supporting Metrics delve into the reasons behind these issues. This layered approach allows for a more comprehensive understanding of supply chain dynamics.

The highest level of use for these metrics includes integrated supply chain benchmarking and diagnostics, which are essential for top management and consultants. The audience for this information consists of various stakeholders, including supply chain managers and consultants, who can leverage these insights to enhance performance.

Overall, this slide emphasizes the importance of a multi-faceted measurement strategy in supply chain management, encouraging organizations to adopt a systematic approach to identify and address inefficiencies. This is crucial for driving improvements in overall business performance.



This slide is part of the Supply Chain Strategy and Performance Management PowerPoint presentation.

This toolkit is created by trained McKinsey, BCG, and Porsche Consulting consultants and is the same used by MBB, Big 4, and Fortune 100 companies when performing Supply Chain Initiatives.

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Supply Chain Analysis Supply Chain Management Performance Management Supply Chain Benchmarking Sales KPI

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