On the importance of alignment and supply chain analytics with Michele Ginocchietti, Worldwide Distribution Responsible at Luxottica
Being present at the Supply Chain Analytics conference, held in Amsterdam, The Netherlands, the PERFORMANCE Magazine team accessed valuable insights from highly skilled professionals in the field.
One of the interviewed experts was Michele Ginocchietti, Worldwide Distribution Responsible at Luxottica, Italy.
Even from the beginning of the interview, Ginocchietti emphasized the importance of aligning the performance measured with the corporate strategy. Therefore, supply chain KPIs should be aligned to the company’s KPIs, which should reflect the overall strategy.
KPIs lead the company’s behavior and, therefore, the company’s results. Simply by reading the numbers you should be able to tell how the supply chain is performing and, if everything is properly aligned, how the company is performing as a whole.
When it comes to supply chain analytics, Michele Ginocchietti considers that one must be able to read through large amounts of data in order to understand the correlations between a KPI’s result and the real performance of the company. Also, all the sub-areas related to supply chain should be measured and taken into consideration, from Operations to Logistics, in order to reflect the real performance.
Trusting the data and the message behind it is, according to Ginocchietti, the main challenge encountered in supply chain analytics.
Developing the right set of KPIs for managing the business is essential, and Analytics should establish the correlations between the process’s results and the KPIs. The example he offers comes from his own company, Luxottica. Although they measure the store traffic, it does not always reflect the sales, and understanding this correlation is what helps Luxottica manage the sales process.