“If only I could have seen that coming, I could have saved a lot of money”.
If a company can look into the future and predict supply chain key performance indicators (KPI’s) it will understand what needs to be done in order to meet financial goals. Planning is the ability to look into the future and proactively change it. The plan provides the critical information that is required to generate the KPI’s of the future. Many things can not be predicted, but the right KPI’s allow executives and managers to identify problems early, so that new plans can be created to get back on track. Creating a good plan is critical, but it also has to be communicated to all the stakeholders in the extended enterprise, including customers and suppliers to quickly get agreement and alignment. The plan then needs to be monitored by management to insure that the company is on track. Companies have shown if they combine better planning with better visibility and performance management the impact on profits and Return-on-Assets is significant. To accomplish this Supply Chain Planning and Performance Management must be linked together in a closed loop process.
Adexa Supply Chain Performance Management solves this problem by providing a supply chain planning system of record with hundreds of ready-to-go KPI’s, complete with formulas and calculations. It can be deployed with any of the Adexa planning solutions, or it can be utilized as a stand-alone supply chain performance management system. Plans from Adexa’s Demand Planning, S&OP, and Supply Planning modules provide a forward looking prediction of company’s performance that can be compared to actual performance. The system can be extended by adding customized KPI’s, data, or measures. Each stakeholder can personalize their view of the supply chain by bringing together reports, metrics, analytics, and scorecards based on their role and authority. Amongst other measures, the robust library of data and metrics includes:
• Financial (Revenue, Operations cost, Inventory costs)
• Demand (Forecast Accuracy, Fill Rates, Order lead-times)
• Production and Distribution (Plans and Conformance)
• Inventory (Days-on-hand, Slow-moving, Inventory Turns)
• Resource (Capacity, Utilization, Loads)
• Purchasing (Quantities, On-time performance, Quality)