What is KPI-driven planning in SAP SRD-SCM-SCP - SCM-Supply Chain Planning and Control?

SAP Term: KPI-driven planning

• Component: SRD-SCM-SCP

• Component Name: SCM-Supply Chain Planning and Control

• Description: A planning method where key performance indicators KPIs are used as standards for current and future planning. The KPIs are linked to exceptions for optimal problem resolution. Examples of KPIs include receipt days of supply and inventory days of supply.

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• Key Concepts: 
  KPI-driven planning is a process used in SAP Supply Chain Planning and Control (SRD-SCM-SCP) to measure and monitor the performance of a supply chain. It involves setting Key Performance Indicators (KPIs) to track the performance of the supply chain, such as inventory levels, delivery times, and cost savings. The KPIs are then used to identify areas of improvement and develop strategies to optimize the supply chain. 
  
  How to use it: 
  To use KPI-driven planning in SAP SRD-SCM-SCP, first identify the KPIs that are most important for your supply chain. These could include inventory levels, delivery times, cost savings, or any other metrics that are relevant to your business. Once you have identified the KPIs, set targets for each one and track them over time. This will allow you to identify areas of improvement and develop strategies to optimize your supply chain. 
  
  Tips & Tricks: 
  When setting KPIs for KPI-driven planning in SAP SRD-SCM-SCP, it is important to set realistic targets that are achievable. Setting unrealistic targets can lead to frustration and a lack of motivation when trying to improve the supply chain. Additionally, it is important to regularly review the KPIs and adjust them as needed in order to ensure that they remain relevant and up-to-date. 
  
  Related Information: 
  For more information on KPI-driven planning in SAP SRD-SCM-SCP, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SRD_SCM_SCP/latest/en-US/f9f8d7a3c2b14e6f9a7d3c8b2f5e4d1a.html