Hierarchical Metrics for Supply Chain Performance Analysis PPT

This PPT slide, part of the 83-slide Supply Chain Strategy and Performance Management PowerPoint presentation, outlines 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 accompanied by examples, objectives, highest level of use, and the intended audience for these metrics.

Key KPIs focus on critical performance indicators, such as forecasting accuracy expressed as a percentage of sales. The objective here is to pinpoint specific issues within the supply chain. Supporting Metrics, like the percentage of suppliers connected via Electronic Data Interchange (EDI), aim to identify the underlying reasons for problems at various stages of the supply chain. Other Operational Measures provide additional context, such as the proportion of A-goods in inventory, which can offer deeper insights into operational efficiency.

The slide emphasizes the importance of these metrics for different stakeholders. It indicates that consultants and supply chain managers are the primary users, while top management may also benefit from integrated supply chain insights and generic benchmarking. The highest level of use for these measures includes conducting diagnostics on supply chain stages, which can lead to more informed decision-making.

This structured approach allows organizations to systematically evaluate their supply chain performance, identify problem areas, and understand the underlying causes. By leveraging these metrics, companies can enhance their operational effectiveness and drive improvements in their supply chain processes. This slide serves as a valuable resource for any organization looking to refine its supply chain strategy.

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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