Q
Manage Learn to apply best practices and optimize your operations.

How does SAP Lumira support four critical supply chain KPIs?

Gaining visibility tops the list of supply chain management challenges. Here's a look at how the Lumira's dashboard of key performance indicators can help.

In today's globalized, complex and volatile supply chain, the need for supply chain visibility that enables decisive...

actions is more important than ever.

Supply chain executives can access better visibility with the HANA-powered Lumira, which offers a dashboard using real-time analytics to show four critical supply chain key performance indicators. These supply chain KPIs are vendor delivery performance, sales trend, line fill rate and months of supply. The required data for these supply chain KPIs streams into the dashboard through sensors, smart devices, GPS and RFID.

However, before delving into the details of the dashboard, let's take a look at five challenges that today's supply chain executives face:

  • Getting supply chain visibility. Supply chain practitioners are inundated with unstructured data and are struggling to transform it into insight that can help them make better, more informed business decisions.
  • Preventing cost escalations. A number of mercurial factors -- such as wage increases in previously low-wage countries, and fluctuating transportation costs due to oil and fuel price volatility -- often add to supply chain practitioners' woes, raise costs and increase the complexity of supply chain management.
  • Lowering risk. Supply chain practitioners are increasingly held accountable in areas such as reducing carbon footprints and supply chain sustainability.
  • Aligning products with customer needs. There is a gap between customers' needs and company offerings. Companies tend to focus more on coordinating with suppliers to design products than to incorporate customer feedback. Eventually, this situation leads to an inefficient supply chain where unwanted products remain unsold while others face empty racks.
  • Gaining control of globalization challenges. While globalization has opened up a world of business opportunities, supply chain executives still struggle with longer lead time, poor quality and unreliable delivery.

To help boost visibility -- and thus help boost better supply chain management, more generally -- Lumira offers a single dashboard with real-time data that captures the following four critical supply chain KPIs:

  • Vendor delivery performance provides summarized as well as detailed visibility to purchase situations of the current month, both in terms of quantity and value. It also shows purchase orders that aren't delivered as yet, as well as delivery schedules of future deliveries.
  • Sales trend shows how a particular product's or brand's forecasted sales are faring against actual sales, in case supply chain practitioners need to take any timely action such as increasing production of fast-selling products.
  • Line fill rate is a holistic view of all sales orders shipped on time. It also leverages historical data to predict accuracy and timeliness of line fill rates for future orders. 
  • Months of supply calculates the months of supply of a product that the company will need to produce by taking current inventory level, actual and forecasted consumptions into account.

Next Steps

How retailers can improve their supply chain

HANA is key to SAP's cloud

British Gas improves supply chain logistics

This was last published in July 2016

Dig Deeper on SAP implementation and upgrades

PRO+

Content

Find more PRO+ content and other member only offers, here.

Have a question for an expert?

Please add a title for your question

Get answers from a TechTarget expert on whatever's puzzling you.

You will be able to add details on the next page.

Join the conversation

2 comments

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

What are your company's most important supply chain KPIs and how do you manage them?
Cancel
In steel industry from where I have retired the availability of steel scrap or iron ores or coal on long term basis without price fluctuation is key KPI.
Cancel

-ADS BY GOOGLE

SearchManufacturingERP

SearchOracle

SearchDataManagement

SearchAWS

SearchBusinessAnalytics

SearchCRM

SearchContentManagement

SearchFinancialApplications

Close