Consumer Packaged Goods

Building and Leveraging a Metrics Framework to Drive Supply Chain Performance

CPG (Consumer Packaged Goods) companies must leverage Supply Chain Performance Management (SCPM) with an integrated metrics framework. It ensures business intelligence systems provide insights, enabling accurate business decisions in supply chain management.

Infosys proposes a balanced set of metrics aligned to supply chain functional areas for effective decision-making. These metrics need to be mapped to the processes of each supply chain function, the business strategy and the roles for executing these processes.

Infosys’ Metrics Approach to Supply Chain Management

The metrics framework must be characterized by

• Reliability - As long as circumstances governing the process do not change, the metric should return a consistent value.
• Validity - A valid metric measures the concept in a specific business context.
• Accessibility - Good metrics should be retrieved with reasonable effort and cost.
• Relevance - Metrics should be meaningful so that stakeholders can relate to the information and take decisions.

Link metrics to overall strategic objectives by

• Determining strategic objectives to evaluate your supply chain.
• Building a supply chain metrics hierarchy, from high-level metrics to more tactical or operational metrics.

Create an exhaustive metrics bank

A metrics framework can enhance supply chain performance by establishing a cause-and-effect relationship between relevant metrics. By consolidating important metrics such as forecast accuracy, order fulfillment times, manufacturing schedule adherence, enterprises can leverage end-result data.

Enterprises must have a unique metrics framework so that Supply Chain Management becomes a business-critical process driven by metrics and supported by business intelligence.

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