Glossary
Dashboard
Tags: Glossary
A performance measurement tool used to capture a summary of the key performance indicators (KPIs)/metrics of a company. Metrics dashboards/scorecards should be easy to read and feature 'red, yellow, green' indicators to flag when metric targets are not being met. Ideally, a dashboard/scorecard should be cross-functional in nature and include both financial and non-financial measures. In addition, scorecards should be reviewed regularly—at least on a monthly basis—and weekly for key functions—such as manufacturing and distribution—where activities are critical to the success of a company. The dashboard/scorecards philosophy can also be applied to external supply chain partners (such as suppliers) to ensure that supplier's objectives and practices align. Synonym: Scorecard.
What is Dashboard?
A dashboard is a powerful tool used in logistics to measure and monitor the performance of a company. It provides a summary of key performance indicators (KPIs) and metrics that are essential for evaluating the success of various aspects of the business.
The purpose of a dashboard is to present information in a clear and concise manner, making it easy for users to understand and interpret. It is like a control panel that allows managers and decision-makers to quickly assess the health of the company and identify areas that require attention or improvement.
One of the key features of a dashboard is the use of 'red, yellow, green' indicators. These indicators help to flag when metric targets are not being met. For example, if a certain KPI falls below the desired threshold, it will be highlighted in red, indicating that immediate action is required. On the other hand, if a metric is performing well, it will be displayed in green, signifying that everything is on track. Yellow indicators may represent a warning or a need for caution.
An effective dashboard should be cross-functional, meaning it should cover various departments and functions within the company. It should not only focus on financial measures but also include non-financial measures that are equally important for evaluating performance. By considering both financial and non-financial aspects, a dashboard provides a holistic view of the company's overall health and progress.
Regular review of the dashboard is crucial for its effectiveness. It is recommended to review the dashboard at least on a monthly basis to track long-term trends and identify patterns. However, for key functions like manufacturing and distribution, where activities are critical to the success of the company, weekly reviews are advisable. This ensures that any issues or deviations from targets are promptly addressed, minimizing potential disruptions to the supply chain.
The concept of a dashboard can also be extended to external supply chain partners, such as suppliers. By aligning their objectives and practices with those of the company, the dashboard approach can help ensure a seamless and efficient flow of goods and services. This collaborative approach fosters transparency and accountability among all stakeholders, leading to improved performance and customer satisfaction.
In conclusion, a dashboard is a valuable tool in logistics that provides a snapshot of a company's performance. It enables managers and decision-makers to monitor key metrics, identify areas of concern, and take appropriate actions. By using 'red, yellow, green' indicators, a dashboard highlights performance deviations and prompts timely interventions. Regular review and cross-functional inclusion are essential for its effectiveness. Furthermore, extending the dashboard philosophy to external supply chain partners promotes collaboration and alignment of objectives.