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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