When we talk about configuring KPIs,what we mean is that after you select the ones you think are right, you create a comprehensive documentation of each and every relevant set of details for each KPI and activate them, so that the data these indicators collect will be easily reported on and analyzed.
In order to get a grasp on how the processes of KPI documentation and configuration work, we have 15 tips for you to keep in mind at all times.
1. Link KPIs – upstream with business objectives and downstream with organizational initiatives.
KPIs should be connected to organizational objective as they make objectives SMART. Initiatives should be establish to support the achievement of objectives by improving KPI results.
Key performance indicators (KPIs) are measurements enterprises use to determine how they’re doing with meeting their goals. High-level KPIs relate to the overall performance of the business, while low-level ones typically evaluate the processes of respective departments.
Measures the level of extra stock that is maintained below the cycle stock to buffer against stock-outs. Safety stock exists to counter uncertainties in supply and demand.
