Difference between revisions of "A109"

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−	[[File:OR-BSM.png|thumb|Business Strategy Map template]][[t:BSM]]: {{OR}} recommends the use of a [[t:BSM]] to visualize and/or communicate the linkage between the business priorities and the metrics/attributes in a {{this}}.	+	[[File:OR-BSM.png|thumb|Business Strategy Map template]][[t:BSM]]: {{OR}} recommends the use of a [[t:BSM]] to visualize and/or communicate the linkage between the business priorities and the metrics/attributes in a scorecard.
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		+	A [[t:BSM]] is typically created after the supply chain strategy is defined and after the initiatives are planned and funded to operationalize/implement such strategy ('strategic initiatives').
	===Notes===		===Notes===
	[[sc:A101|Busines plan review]] is a key step prior to defining scorecards. Without a deep understanding of the business plan, metrics are typically not --clearly-- linked to business priorities. Developing the [[t:BSM]] will reveal any gaps in linkage between priorities and metrics.		[[sc:A101|Busines plan review]] is a key step prior to defining scorecards. Without a deep understanding of the business plan, metrics are typically not --clearly-- linked to business priorities. Developing the [[t:BSM]] will reveal any gaps in linkage between priorities and metrics.

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Revision as of 17:18, 17 November 2021

The activities associated with the selection of the key metrics for each performance attribute for each supply chain. A scorecard is used to define the metrics of most interest to an organization, to arrange them by area of impact, by business priority, and to provide a container for later benchmarking comparisons. Each scorecard is built from a subset of hundreds of OpenReference metrics.

Use Cases

Balanced Scorecard: A standard method to analyze the performance of supply chains is the use of Balanced Scorecards. A Balanced Scorecard consists of a limited number of agreed, well-defined metrics, categorized by business perspective.

An example of such metrics are the level-1 Metrics for each Performance Attribute defined in OpenReference. Where necessary the level-2, 3, and 4 metrics are available to analyze and explain deviations between scorecard targets and actuals for each metric.

A OpenReference supply chain scorecard typically consists of 6-10 level-1 metrics.

Business Strategy Map: OpenReference recommends the use of a Business Strategy Map to visualize and/or communicate the linkage between the business priorities and the metrics/attributes in a scorecard.

A Business Strategy Map is typically created after the supply chain strategy is defined and after the initiatives are planned and funded to operationalize/implement such strategy ('strategic initiatives').

Notes

Busines Plan Review is a key step prior to defining scorecards. Without a deep understanding of the business plan, metrics are typically not --clearly-- linked to business priorities. Developing the Business Strategy Map will reveal any gaps in linkage between priorities and metrics. The Discovery (A102) and Documentation/definition (A108) of supply chains are a key preceding steps. Without clearly defined supply chains, scorecards may contain aggregate data of conflicting supply chain types e.g. Make-to-Order and Make-to-Stock together.

Note: Common inputs and outputs are listed in alphabetical order. Other inputs and outputs may be required to support varying use cases.Define Scorecard Align Strategy 4110900 3 Supply, Chain, Management, Performance, Metrics, Standard, Reporting Selection of the key metrics for each performance attribute for each supply chain. A scorecard is used to define the metrics of most interest to an organization, to arrange them by area of impact, by strategic linkage, and to provide a container for later benchmarking comparisons