What is key performance indicator in SAP SCM-APO-SCC - Supply Chain Cockpit?

SAP Term: key performance indicator

• Component: SCM-APO-SCC

• Component Name: Supply Chain Cockpit

• Description: Measurement or metric used for evaluating supply chain performance. KPIs express abstract supply chain objectives in financial or physical units for comparative purposes. Data pertaining to the various planning processes such as demand planning or production planning is collected, measured, and transformed into physical or financial information that can be used to compare results and thus measure performance. For example, one of the supply chain flexibility metrics is Supplier On-time Delivery Performance which indicates the percentage of orders that are fulfilled on or before the original requested date. APO KPIs are launched from the and access data from the Business Information Warehouse BW. APO KPIs cover the following areas: Human Resources Production Purchasing Inventory Control Finance Controlling

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• Key Concepts: 
  A key performance indicator (KPI) is a metric used to measure the performance of a business process or activity. In the context of SAP SCM-APO-SCC Supply Chain Cockpit, KPIs are used to measure the performance of supply chain activities such as inventory management, order fulfillment, and customer service. 
  
  How to use it: 
  KPIs can be used to identify areas of improvement in the supply chain process. For example, if a KPI indicates that inventory levels are too low, then the organization can take steps to increase inventory levels. Additionally, KPIs can be used to compare the performance of different supply chain activities and identify areas where improvements can be made. 
  
  Tips & Tricks: 
  When setting up KPIs for the SAP SCM-APO-SCC Supply Chain Cockpit, it is important to select metrics that are relevant to the organization’s goals and objectives. Additionally, it is important to ensure that the KPIs are measurable and actionable so that they can be used to make meaningful improvements in the supply chain process. 
  
  Related Information: 
  For more information on setting up KPIs for SAP SCM-APO-SCC Supply Chain Cockpit, please refer to the official SAP documentation. Additionally, there are many online resources available that provide guidance on selecting and setting up KPIs for supply chain management.