Designing a leading indicator dashboard for the supply chain at Philips Lighting
Logistics Key Performance Indicators such as customer service level and total stock level are important tools to measure the performance of the supply chain. However they do not provide the logistics managers in the supply chain with the information needed to control he performance.
In the Industrial Engineering design project, a system of ‘leading indicators’ has been designed that allows the managers to relate the detailed state of the supply chain to future performance in the market, enabling them to take corrective actions long before harm in the market or on the cost sheet is done.
The leading indicator system makes the supply process more transparent and more proactive. Several tools were developed to measure and analyze each leading indicator. Guidelines were provided for managers to monitor and evaluate the stock replenishment performance in each phase and, if necessary, to take corrective action. The leading indicator dashboard has been implemented using different perspectives to satisfy the needs of different stakeholders.