Supply chain metrics

There’s a post over at beyondthemba entitled “Supply Chain Metrics.”

The author states, “however, the only people who can really affect day to day performance and execution are those at the ground level! There are thousands of decisions being made in a supply chain every day that the CEO and VPs don’t even know about let alone have any influence over.”

Couldn’t agree more. As I’ve talked about many times here, constant change is the reason why. If you think about any large organization, they build a plan with a set of metrics and targets that they need to support that plan. Then they communicate this information down to the “troops” who’s job it is to execute to the plan and targets for the metrics. That’s reasonably straightforward when the business runs like clockwork.

The problem is that it rarely runs like clockwork anymore. The reality is that the “ground level” people have to respond to constant changes - and every action they take impacts those metrics. Each individual decision may not in a material way impact a metric, but in aggregate, their actions drive the metrics and whether or not the company executes to the targets.

Organizations must arm these ground level people with the information and tools to not only respond quickly, but also ensure that their responses are aligned with the metrics that are defined to drive the business to achieve it’s goals.

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