Course 5 - Supply side: Supplier and Procurement analysis

Question 1

Key Performance Indicators (KPIs)

Answer 1

set of measures focusing on those aspects of organizational performance that are the most critical for the current and future success of organization

Question 2

Types of KPIs

Answer 2

=> financial (costs, revenues, …)

=> non-financial (customer satisfaction, process cycle time, …)

Question 3

KPIs key points

Answer 3

1. reflects critical success measures
2. should be quantifiable
3. should be easily collected from a reliable source
4. should be monitored and reported
5. guides the organization in its progress towards goals

Question 4

3 interdependent types of Enterprise data

Answer 4

1. Master data
2. Transaction data
3. Analytical data

Question 5

Master data

Answer 5

=> describes key business objects which are shared across the enterprise -> organized in views

=> current, detailed

=> low frequency of changes (create, update, delete of master data)

=> relatively constant in volume

=> often referenced, e.g. by transaction data

Question 6

Transaction data

Answer 6

=> describes business events and results of daily operational tasks -> business documents

=> current, detailed

=> medium frequency of changes (create, update, delete of business docs)

=> increasing in volume

=> references master data

Question 7

Analytical data

Answer 7

=> describes business performance that support organizational decision-making, analysis and reporting -> metrics, reports/statistics,…

=> historical, aggregated

=> high frequency of changes (aggregation of transaction data)

=> slowly increasing in volume

=> references master data, time-dependent

Question 8

Integration between Analytics and Op systems

Answer 8

=> Traditional:

• separated
• Business intelligence solutions for OnLine Analytical Processing (OLAP)
• ERP for OnLine Transaction Processing (OLTP)

=> New approach:

• together
• everything in-memory computing
• integrated in ERP

Question 9

Analytics ->

Answer 9

1. Objectives
2. Target group
3. Typical areas
4. Analytical information systems
5. In the past: data warehouse
6. today: in-memory computing

Question 10

Report types

Answer 10

=> Purchase order history
=> Rolling inventory comparison
=> Contract spend
=> Contract tracking
=> Monitoring invoices

Question 11

Real-time reports

Answer 11

=> based on op data, no intermediate data storage (e.g. data warehouse)

=> objective: fast reaction times

Question 12

Drill-down

Answer 12

=> detailed analysis of aggregated data down to the doc level

=> objective: support root cause analysis

Question 13

Slide-and-dice

Answer 13

=> easy change between rows and columns

=> objective: analysis from different perspectives

Question 14

KPIs and thresholds

Answer 14

=> KPIs are highly aggregated and often represent ratios

=> objective: ease of interpretation, automatic monitoring