Article
Performance Management in Supply Chain and Operations
Steering value chain activities towards exceptional performance
Digitalization of supply chains is dramatically changing today's performance management
Customer focus, product complexity paired with shortened product lifecycles, increasing digitalisation, and closer cooperation between partners increase performance management demands on supply chains.
The main drivers behind these developments are costumer requirements and new technology, which have already reshaped traditional supply chains. Costumization of products and services, faster deliveries, real-time transparency, global scale, cost competition in fulfillment, and increased sustainability efforts are the result.
Key elements of supply chain management
Supply chain performance management is a unified approach to improving the effectiveness and efficiency of all supply chain processes.
Key elements to be considered are:
- Supply Chain Strategy
- Organization
- Planning
- Management, and
- Control Activities
Integrated performance management
Integrated performance management in Supply Chain and Operations focuses on:
- A common understanding of supply chain objectives
- Goal-oriented information on target achievements
- Supply chain transparency
- Aligned and agreed-upon supply chain metrics
- Integrated technical solutions
- A flexible enterprise data warehouse
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