Companies derive benefits from the KPI-driven strategies approach by engineering costs out of their supply chain execution processes. The greatest gains are accomplished by taking control of the processes in real-time, identifying and isolating costly exceptions, and monitoring those exceptions as carefully and efficiently as possible.
Companies often handle exceptions and unexpected events by deploying expeditors and other personnel to handle those problems — which are extremely costly. Companies that deploy KPIs now have the benefit of actionable intelligence so they can take immediate action on exceptions; over time, reducing exceptions with process improvements.
Such efforts lead to increased responsiveness and increased profitability, while enabling the best-in-class companies that adopt these approaches to enhance their competitiveness. By driving out unnecessary costs associated with exceptions and inefficient processes, companies strengthen their connections with suppliers and deepen customer relationships.