Gartner Research

Use Metrics the Right Way to Avoid Unintended Consequences in an S&OP Process

Published: 20 July 2018

ID: G00351221

Analyst(s): Debra Hofman , KC Quah

Summary

Supply chain leaders must use caution when using metrics. Metrics used incorrectly or within an immature S&OP process can hurt the reputation of the supply chain. Supply chain leaders should use this research to establish metrics that drive the right behavior.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Identify and Communicate Potential Unintended Consequences in an S&OP Process
    • Unintended Consequence 1: Managing the Metric Versus Managing the Outcome
    • Unintended Consequence 2: Reacting to Point Changes Versus Examining Patterns
    • Unintended Consequence 3: Beating Your Goal as a Bad Thing
    • Unintended Consequence 4: Avoiding Discussion About the Gap but Not Removing the Issue

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