Supply chain key performance indicator dashboards must provide more information than just current business metrics, according to Sujit Singh, COO of the supply chain software solutions provider Arkieva.
Mr. Singh outlined the importance of looking beyond key metrics in a recent post for EBN.
He believes KPI dashboards should also highlight how the metrics are derived, which Mr. Singh refers to as the cause-concern-consequence sequence. To explain this concept, he compared the supply chain to a simple action — driving.
"When you are driving and the engine overheats, it is a concern," Mr. Singh wrote. Since engine overheating can result in a car breaking down, drivers must take proactive steps to identify the cause of the issue.
"[M]odern vehicles have sensors that check for the potential causes continuously," Mr. Singh wrote. "These sensors check for low coolant, low oil pressure and a variety of other things that provide a warning, even before it becomes a concern."
Like cars, KPI dashboards should continuously monitor the causes of various supply chain concerns before a consequence arises, according to Mr. Singh.
To view Mr. Singh's full post, click here.
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