Measuring KPI’s that add value

Measuring KPI’s has become a very popular tool in many organizations. It enforce teams to share their results and triggers improvement suggestions. For some it also has become a dreadful part of their monthly reporting in explaining the issues behind the numbers over and over again. Therefore an organization should only concentrate on KPI’s that make sense and add value. Also it should consider to make adjustments to them every now and then to keep people alert.

The following article was posted on LinkenIn and is about 8 key Procurement KPI’s.


Supply Chain in the Pharmaceutical Industry

This post does not entail a specific company but an industry: The Pharmaceutical Industry. Pharmaceuticals are rarely praised for their Supply Chain practices and the article ‘What ails the pharmaceutical supply chain’ is not that positive either. The article does point out that comparing companies on their Supply Chain practices can be difficult. Companies differ in structure and comparing distributors with manufacturing facilities might be a large stretch.

Nevertheless is there an opportunity for the Pharmaceutical industry to stand out more in their Supply Chain practices.

The article:


One of the interesting features of Supply Chain Management is that there is a big difference in level of development between companies. Some companies have invested more time and effort in developing efficient, cost saving and professional Supply Chain practices than others.

In the category ‘Companies’ we will focus on companies and their Supply Chain practices. The aim is to discuss a diversity of companies at all levels of Supply Chain.

We start of with Amazon. A well-respected company from all perspectives, but probably most of all because of their Supply Chain practices. I order from Amazon and find it an excellent service. Mind you, don’t order too many copies of an unpopular product, as you will find it back ordered. But who can disagree that this is not necessarily a bad thing from an inventory management perspective.

I found the article “Amazon rising fulfillment costs” and found it interesting as it shows that Amazon has trouble keeping their overall Supply Chain costs from growing. Unfortunately the article does not give much inside on what the specific cause for the growth is. I like to believe that the slightly increasing costs are from a continuous investment in Supply Chain that is needed to keep the costs from growing even faster. A company that is always looking for new opportunities in the market understands that it costs money to make money.

The article:

Global Economic Conditions snapshot

McKinsey is a great source for global economic and supply chain concerns. This survey is recently published and reflect how executives all over the world feel about the economic situation in their area and how it will develop in the future.

Overall the results are slightly optimistic and proof that we are in or working towards a growing economy.

Check it out yourself:
Economic Conditions Snapshot, June 2013: McKinsey Global Survey results