Secondary menu

Supply Chain Management

previous topic download pdf take the test next topic

Performance monitoring

What is it?

Putting performance monitoring systems in place can be an important way of keeping track on the progress of your business. It gives you vital information about what's happening now and it also provides the starting point for a system of target-setting that will help you implement your strategies for growth. Advice on this area of your business and examples of how online technologies and software can assist can be found at HP’s Business Process Monitor page.

What data to collect? (What are KPI’s?)

Key Performance Indicators (KPIs) help organisations understand how well they are performing in relation to their strategic goals and objectives. In the broadest sense, a KPI can be defined as providing the most important performance information that enables organisations or their stakeholders to understand whether the organisation is on track or not. KPIs can be allocated to most of your performance areas, including sales, marketing, financials, supply chain, social media and SEO. The key is to define your objectives and then monitor performance over time and adjust your resources accordingly.

Identifying areas for possible improvement

Performance targets are a powerful management tool that can help you deliver the kind of strategic changes that many growing businesses need to make. The top-level objectives of your strategic plan can be implemented through departmental goals, and setting targets based on KPIs is an ideal way of doing this.

Improved business intelligence

Business intelligence (BI) is a set of theories, methodologies, architectures, and technologies that transform raw data into meaningful and useful information for business purposes. BI can handle enormous amounts of unstructured data to help identify, develop and otherwise create new opportunities. BI, in simple words, makes interpreting voluminous data friendly. Making use of new opportunities and implementing an effective strategy can provide a competitive market advantage and long-term stability. Sites such as Australian-developed Professional Advantage and Sybase can help your business keep track of these important areas efficiently and effectively.