I talked in an earlier post about the need to collect supply chain metrics and record your activities on a very detailed level. Reason being that you will need it in order to support you in turning performance indication into preventive actions. Now to part two and the importance of measuring what doesn’t happen!
Numerous articles and reports have been published around which metrics or KPIs are the right ones to use in an organization. And every time the conclusion is (not surprisingly) that a KPI has to reflect the overall company strategy in order to influence people in the organization in the right way and not be counter-productive. So Wal-Mart would focus on measuring cost reduction, Zara on speed and time-to-market. So does this mean we don’t need to measure anything else?
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