Revolutionize Your Supply Chain with Effective KPIs
Supply chain organisational structure enables effective and accountable decision-making
trace. can help design an organisational structure that aligns your supply or service chain strategy and operational processes, drives accountability for targeted areas through supply chain KPIs,, and considers relevant centralisation opportunities. There can be several triggers to review an organisation's structure including – a change in strategy, new technology, new markets & channels, cost reduction, and M&A activity.
trace. can assist your organisation to define its supply chain structure, optimal levels of centralisation, workforce composition and supply chain talent & capability gaps, RACIs, job descriptions and cross-functional workflows.
trace. can help organisations to restructure operations and supply chain labor in the following ways:
- Process analysis: Analyse existing operations processes to identify inefficiencies, bottlenecks, and areas for improvement.
- Workforce analysis: Evaluate the organisation's current workforce, including skills, capabilities, and responsibilities, to identify areas for improvement.
- Labor restructuring: Recommend changes to the organisation's workforce structure, such as reducing headcount, outsourcing certain functions, or creating cross-functional teams, to improve efficiency and effectiveness.
- Process reengineering: Recommend and implement process improvements, such as Lean, Six Sigma, or Kaizen methodologies, to streamline operations and reduce costs.
- Technology implementation: Recommend and implement logistics management software, WMS, TMS, and other relevant tools to improve supply chain visibility and management.
- Change management: Facilitate the transition to the new operations and workforce structure, including communication, training, and support for employees around updated supply chain KPIs.
- Performance management: Develop and implement a performance management system (including supply chain KPIs) to track and measure the performance of the new operations and workforce structure.
To complement a purposeful organisation structure, leading supply chains have clear and aligned policies and KPIs to provide focus, guide behaviour and drive accountability for supply chain and organisational performance.
This is both important internally across functional groups, as well as, externally with suppliers and customers.
KPIs – the saying is true. “What gets measured, gets done.”
It is important that one’s supply chain KPIs are balanced across two dimensions:
- Leading vs. Lagging KPI measures – ensure the right balance of retrospective accountability to future focus
- Outcome vs. Process KPI measures – ensure we are equally focussed and accountable for the processes that drive the outcomes – not just the outcomes.
Policies are key enablers to decision-making. The clearer the supply chain KPIs and policies are, the more seamless decision-making can become for team members and systems. For example, operationalise ‘best practice’ across planning, replenishment, rostering, transport, etc. first starts with defining clear policies to then be built into processes and system architectures.
Want to work with us? Enquire today!
We pride ourselves on being Australia’s benchmark boutique advisory firm specialising in supply & service chain strategy. You can count on our expert team to provide you with robust and practical solutions to the many different factors that affect efficient supply chain management. Our consultants can help with planning operations, setting up warehouse distribution systems, workforce rostering and improving your customer experience. We pride ourselves on creating resilient and sustainable supply chain systems. Contact us to begin working on your business's supply chain strategy today.