OpenReference

The activities associated with the selection of the key metrics for each performance attribute for each supply chain. A scorecard is used to define the metrics of most interest to an organization, to arrange them by area of impact, by business priority, and to provide a container for later benchmarking comparisons. Each scorecard is built from a subset of hundreds of OpenReference metrics.

Use Cases

Balanced Scorecard example

t:BSC: A standard method to analyze the performance of supply chains is the use of Balanced Scorecards. A t:BSC consists of a limited number of agreed, well-defined metrics, categorized by business perspective.

An example of such metrics are the level-1 Metrics for each Performance Attributes defined in OpenReference. Where necessary the level-2, 3, and 4 metrics are available to analyze and explain deviations between scorecard targets and actuals for each metric.

A OpenReference supply chain scorecard typically consists of 6-10 level-1 metrics.

Business Strategy Map template

t:BSM: OpenReference recommends the use of a t:BSM to visualize and/or communicate the linkage between the business priorities and the metrics/attributes in a scorecard.

A t:BSM is typically created (and appended to the scorecard) after the supply chain strategy has been defined or refreshed and after the initiatives to operationalize/implement such strategy ('strategic initiatives') have been defined, planned, and funded.

Notes

• Busines Plan Review (A101) is a key step prior to defining scorecards. Without a deep understanding of the business plan, metrics are typically not --clearly-- linked to business priorities. Consider developing the t:BSM to reveal any gaps in linkage between priorities and metrics.
• The Discovery (A102) and Documentation/Definition (A108) of supply chains are a key preceding steps. Without clearly defined supply chains, scorecards may contain aggregate data of conflicting supply chain types e.g. Make-to-Order and Make-to-Stock together.

Link:t:GRC4

Hierarchy

ID	Name	Level	x
A1	Align Strategy	2	A1
A109	Define Scorecard	3	A109

Term(s)

ID	Name	Clear	x
MTO	Make-to-Order		MTO
MTS	Make-to-Stock		MTS

Workflow

From Input(s)	Process	Output(s) To
wf_process wf_arrow A108 Network Definition A107 Strategic Priorities A104 Prioritized Supply Chains A103 Supply Chain Definition	A109	wf_arrow wf_process Scorecard Definition A110 Scorecard A112

Define Scorecard Align Strategy 4110900 3 Supply, Chain, Management, Performance, Metrics, Standard, Reporting Selection of the key metrics for each performance attribute for each supply chain. A scorecard is used to define the metrics of most interest to an organization, to arrange them by area of impact, by strategic linkage, and to provide a container for later benchmarking comparisons