Strategic KPIs

ABSTRACT The industry s need for improvement is intensifying. To be able to measure the effect of improvement processes, the companies need to develop and implement Key Performance Indicators (KPIs). Implemented KPIs must reflect the critical success factors in the company. To utilize the power of KPIs, the KPIs must be communicated to the employees. The most effective way of communicating KPIs is by using electronic dashboards. Employees will be motivated if they are able to see how their contribution affects the KPIs. By employing KPIs at all levels in the company, the employees wfll strive to achieve the same strategic goals. 

Overall, the ftamework of this study provides quantitative influence of the logistics components and KPIs in healthcare context. It is a good input for making the strategic plan to improve healthcare logistics targeting eflfecliveness and efiiciency. 

Assessment Is based on strategic (gap analysis) and operational (KPIs) factors... 

Moreover, to reveal the possible improvement potentials of the prevailing supply chain, a supply chain assessment based on a gap analysis and a selfbenchmarking based on adequate key performance indicators (KPIs) is conducted. The gap analysis as a strategic factor results from the deduced TO-BE configuration compared to the AS-IS situation of the supply chain. Just like the gap... 

Moreover, a main focus of this phase is on compiling and selecting relevant KPIs based on the strategically desired TO-BE states. Here the aim is to enable managers to use these KPIs to conduct a self-benchmarking of their organization s performance. 

SCD Phase 3 includes the aforementioned gap analysis which results from the comparison of the TO-BE and the AS-IS states of the supply chain recorded in the previous two phases in order to identify areas requiring optimization. This comparison is achieved by filling the results from SCD Phase 1 as well as from SCD Phase 2 into a morphological box. This allows for a clear illustration of the deficit arising from the comparison of the TO-BE and AS-IS situation. Based on the analysis of the strategic and operative gap and a KPI benchmarking, suitable corrective actions to all supply chain processes, if necessary, are selected. 

In case of the strategic path, the completed morphological boxes from SCD-Phase 1 and 2 are used to perform a gap analysis, which compares desired and actual supply chains and thereby helps to uncover differences between these two supply chain designs. The operative path provides that based on an organization s competitive priorities adequate key performance indicators (KPIs) are selected. Decision makers can use these KPIs to conduct a self-benchmarking of their... 

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