Why do you need a supply chain (SC) strategy with clearly defined KPIs?

Supply chain strategy & KPIs

Supply chain management makes a decisive value contribution to the company’s success if it specifically supports the strategic corporate goals. However, these objectives must not only be translated into specific instructions for the supply chain, but also made verifiable using measurable key performance indicators (KPIs).

A well thought-out SC strategy in combination with the right KPIs helps to ensure the synchronization of corporate and SCM goals. This separates essential from non-essential issues, focuses available resources on the right initiatives and sustainably increases the company’s success and customer satisfaction.

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What are the challenges?

Developing an individual SC strategy with the right KPIs is a challenge for many companies. We can help you overcome these hurdles with our many years of expertise.

Possible challenges in detail:

Lack of responsibilities and insufficient resources

Without clearly defined responsibilities and sufficient capacities, the development of the strategy and KPIs is made more difficult.

Missing supply chain targets

Corporate goals must be formulated and coordinated, and clear, value-adding supply chain goals must be defined on this basis.

Definition of suitable KPIs

Without a clear system of key figures, the achievement of objectives remains difficult to measure and the success of the SC strategy remains unclear.

What benefits do you achieve through a well thought-out SC strategy & KPIs?

A well thought-out SC strategy in combination with the right KPIs ensures that:

...your resources are used in a targeted manner.

You can concentrate on the right issues, e.g. cost optimization, liquidity management or risk reduction.

...your entire team is working in the same direction.

KPIs create transparency and promote collaboration.

...less relevant topics are identified.

This means that less important issues can be given lower priority or eliminated altogether.

In addition, KPIs enable continuous monitoring of success. With the right KPIs, progress can be measured, deviations identified and measures adapted to ensure long-term success.

When developing your supply chain strategy, it is crucial to involve your stakeholders such as top management, sales, marketing, production and controlling. The selection of relevant targets and their implementation using a suitable KPI system and a coordinated action plan are key success factors.

How we can support you

We offer a customized approach tailored to your company to develop a supply chain strategy with the appropriate KPIs. A typical project comprises three steps:

1

As-is analysis

We analyze whether your company needs a “one-size-fits-all” supply chain or several differentiated supply chains. This lays the foundation for the strategy and the selection of the relevant KPIs.
2
Development of the target concept
Based on the results of the analysis, we develop a strategy that is tailored to one of the generic supply chain types:
- Lean supply chain: focus on cost efficiency (e.g. for commodities).
- Collaborative supply chain: Close customer focus (e.g. in the automotive industry).
- Agile supply chain: High adaptability (e.g. in the fashion industry).
- Flexible supply chain: Premium solutions with a customer focus (e.g. event catering).
3

Operationalization and measures

We define the steps required for implementation, implement them and measure progress based on the defined KPIs.

With our expertise, we ensure that your supply chain strategy is not only future-proof, but also measurable and makes a sustainable value contribution to your company. Make your SC strategy measurable and effective – we can help you!