Center

Center for Executive Education (CEE)

Degree/Diploma

Post Graduate Diploma in Supply Chain Management

Advisor

Dr. Rameez Khalid

Project Type

PGD Project Report

Executive Summary

In any supply chain model, there are three main components i.e. Material, Information and Cash. All these components should be observed & analyzed for agile and efficient Supply chain, But the question is how, the most critical issue in the Pakistani industry is the lack of proper measurement tools and supply chain visibility that makes the Supply chain more dependent on person rather on standard process & practices, and this lack in visibility result in poor decision making. The solution to this problem is the performance dashboard, not only dashboard but integrated dash board. As supply chain management integrates supply and demand within and across the companies, therefore the purpose of this capstone project is to develop an integrated dashboard that can be implemented with ease across different industrial sectors. Addition to our purpose of this capstone, it is very important to keep in mind that there are many dashboards available that organization use internally and many can be accessed on different consulting portals but those lacks optimal KPI that needed to be tracked by specific function, specific sector or specific region. For this reason, the aim of this research is to develop a comprehensive supply analytics dashboard which can be used in all areas of supply management irrespective of industry complexity. Growing of global competition, outsourcing of companies’ non-core activities and the demanding shorter product life cycles have increased businessperson’s interest towards strong Supply chain. Yet the recent development of supply chain literature discovered that supply chain management is not just about simple and physical order fulfilment but more than that and it’s an integrated network of various activities & stages which includes procurement and purchasing, materials management and manufacturing, logistics and distribution, marketing, IT and most important knowledge transfer (Laura & Julia, 2019). A good business need to detect, track, and manage its Supply Chain’s Key Performance Indicators (KPI) so that it can offer timely and reliable delivery for its products and this also enable a business to perform benchmarking to improve practices and current & future performance, which can be a competitive advantage for any business in this dynamin environment. Usually, there are two types of benchmarking and one Results Benchmarking which emphases on quantitative performance measures and second is Best Practices Benchmarking which emphases on qualitative side that is Supply Management Dashboard 2 how well processes are being executed. (Lee, 2014), we will discuss both types of benchmarking for our dashboards. This leads to another question that benchmarking of what metrics and KPI is important. Particularly, the supply chain KPI measuring and its performance monitoring unveils the gap between planning and execution and help a business to identify opportunity areas for further improvement. Though identifying potential area and development of required KPI or metrics is really very challenging task because no set of practical specific guidelines is readily available for business and for supply chain management mangers. Potential KPIs should be developed for each of the supply chain operations-reference (SCOR) model's four meta-processes (plan, source, make, and delivery) and need to be hierarchically grouped such as primary and secondary metrics (Chae, 2009), or KPI can be developed using both SCOR and AHP (Analytic hierarchy process) method. (Novar, Ridwan, & Santosa, 2018) used the SCORs four performance attributes, (1) Reliability, (2) Responsiveness, (3) Cost, and (4) Asset Management and they concluded that Reliability attribute comes at the Top in all supply metrics, forecast accuracy, rejection rate, supply rule and supplier roles comes in reliability attribute. As per one research, (Eckerson, 2011) divides the performance dashboards into three categories; Strategic Dashboard, which are for executives’/Board members for monitoring; Tactical Dashboard, for middle managers concerned with for analysis; Operational Dashboard, for frontline users to manage daily operations. The tailored dashboard shall enable the company to measure and determine the capability of a process to achieve its objectives and shall help a company to trace and track the efficacy and efficiency, and potential failures which leads to a better decision making. We have Chosen the Purposive methodology for our research, target population for this study is CPOs, Procurement managers, Supply chain managers and Operation level people and four different sectors of Textile, lubricants, FMCG, and pharmaceuticals from each of these sectors, who rightly represent organization from all three layers Strategic to Operational. After series of interview, it has been concluded that in Pharmaceutical Procurement department does not feel any need to dash board in supply management and they are very much comfortable with ERP Reporting, to them four areas are important which make their Order planning process reliable & responsive; PR to PO Conversion for Fast Orders; Shorter Lead times; Availability and Purchase Price Variance. The Pharmaceutical Industry Shall require to work Reduce dependency upon china; we have Supply Management Dashboard 3 witnesses the Covid-19 situation and it is now important for to work GLoCal networks, and spreading Procurement base. Also at least three months forecast accuracies are must do for making Order planning process stable. Pharmaceutical sectors need to work on Supplier issues, as it has been noticed that every time on quality issue, procurement team change the supplier. On the contrary, in Oil and gas sector mostly the MNCs are using interactive dashboards at every levels. The supply of base oil till it in the final phase of Finished goods is being visible to the procurement persons or stock analytic person to keep tracking all the KPIs. These dashboards are linked with the ERP solutions as well as SAP. Oil and Gas sector has similar KPIs like any other sector, but it cannot be compared with other sectors due to high Quality, Safety measures and HES requirements. Procurement in the Oil and Gas Industry faces many challenges especially because of the volatility of oil price, supply and demand; however, with the right effective procurement strategy and sharp analysis, they could overturn the crisis into opportunity. In FMCG, based on the interviews it is established that the consumer good multinationals organizations are more towards productivity enhancement and cost savings initiatives. Many have developed the systems to achieve their yearly saving targets, which are synchronized and shared with department personnel top to bottom. On the other hand, the local FMCG are more tilted towards achieving their yearly targets based on units and volumes. Recently some of the organizations (local) have started to use multiple tools including ERP through which they can monitor their indicators regularly. In FMCG, local consumer good organizations must opt for centralized procurement operations rather than distributed department wise. This will result in better operational cost and productivity. And there is a need to focus on product, research, and development to shift sourcing from single to multiple sources specially for local industry. MNC working on higher lead time items should develop alternatives locally to reduce their ordering cost and increase agility and Localized consumer good industry should opt for better ERP systems to increase supply chain visibility and improve performance. Textile sector is largest manufacturing sector in Pakistan. Pakistan is the 8th largest exporter of textile products in Asia. This abundance of raw material is a big advantage for Pakistan due to its beneficial impact on cost and operational lead time. Although this sector is largest manufacturing sector yet hand full of organizations are investing in improving its supply chain and even fewer understand importance of employee Supply Management Dashboard 4 training and development, which is a huge gap in the sector and at surface level we might find this sector is gradually changing but in a closer view we will see even the companies which are working to adopt world class manufacturing standards its mostly because of their clients and fashion giants forcing companies to do so. We have tried to cover over all textile sector from small scale garments manufacturer to large scale vertical setup to get overall picture of industry and implication of procurement dashboard. In discussion with all the companies under study it’s found the company is focused on cost and lead time and there is less focus on relationship management and long-term planning, they don’t care who is the supplier the only thing matters is on time availability sometimes even at the cost of quality the reason behind this behavior is customer’s pressure and short lead times in apparel market the fear of losing orders leads to this behavior. The Textile Industry will require working on Supplier relationship management, Employee training, develop hierarchy, introduce of planning department, Work with fewer number of suppliers and Separate QA assigned to purchase. In the end, after secondary research and interview, it has been concluded that shows that OTIF, Timeliness, PR creation and PPV are the KPIs that are same in any other industry and if the visibility is there through the dashboard than we are able to make optimization in sourcing and supplier management.

Additional Files
Supply Management Dashboard-brief.pdf (1195 kB)
Download

The full text of this document is only accessible to authorized users.

Additional files available below

Share

COinS