Apply best practices
After selecting a few important metrics and measuring them, compare your results with the best performing firms in your industry, or even other industries, to see where your company may be leading and where it may be lagging.
After comparing your metrics with best-in-class firms, set goals for supply chain improvement, keeping in mind the capability of your firm. Goals are not necessarily based only on budget but also on strategy and objectives. They should also be set long-term (yearly) and short-term (weekly, monthly) and should be monitored.
Find ways to continuously improve
Now that you have goals for improvement in place, look for compatible ways to reach those goals. It is essential during this step that there is trust, understanding and information exchange between all links of the supply chain. Good forecasting is an important practice that should also be in place during this step.
Remember, Rome wasn't built in a day, and neither is a good supply chain, particularly in the dynamic business environment in which all companies find themselves today. Keeping a constant eye on key performance indicators, along with continuous evaluation and improvement, should be your mantra for success.
About the Author: Nilesh Anand is currently receiving his masters in Supply Chain Management at The Royal Institute of Technology, Sweden.