Sustainable Solutions for SCM

• Standardise: harmonise interfaces, data types or infrastructure elements (e.g. pallets) • Automate: use machines instead of people and thus achieve economies of scope and scale and better cost structures. • Digitalise: transfer or transform physical information into digital content and increase availability in digital media (e.g. Internet, cloud). • Create transparency: structure, visualise and/or measure processes. • Motivate staff: increase willingness of staff to perform work in a more effective and qualitative manner. • Be value-oriented: increase overlap of product/process result with customer expectation. These principles can be used to evaluate concepts that are to be implemented in order to specify the desired effect for the driver of KPIs. An example in Figure 3.7 shows the idea.

Figure 3.7 Example effect-analysis of “time slots in goods reception” When implementing the focal concept in one pilot project, the analysed effects can be reviewed by using actual data put into a database along with additional information on the context. The next time the concept will be implemented, the effect of the concept on process KPIs can be more precisely predicted and is based on empirical evidence. No redundancies and inconsistencies Two more guidelines that complement the guideline of the economy (see Figure 3.5) consist in the system being free of redundancies and inconsistencies. Whereas a redundant free Measurement Instrument should not contain more than one performance element that is geared toward a certain aspect, inconsistencies can arise from interfaces and conflicts in supply chains. Therefore, potential conflicts should be addressed and a holistic approach should be aimed at. Performance management systems that are used for subjects that cover several interfaces such as supply chains have to deal with conflicts occurring in those systems. An example for conflicts occurring at the interface between production and logistics are shown in Figure 3.8.

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