Posted in Operations and Supply Chain Terms, Total Reads: 554
Definition: Performance and Event Management Systems (PEMS)
It refers to reporting systems that generates reports on key indicators in supply chain management like capacity utilization, inventory days, order cycle time, lead time, service level etc. These reports are used in order to make decisions in order to enhance the service, keeping in mind the business goals.
There are many WMS (Warehouse Management System) and other solutions that embed performance and event management in them. Companies need these systems to monitor their supply change and implement necessary changes. These systems provide reports that consist of plethora of indicators. It’s important to know what indicators need to be monitored.
PEMS consists of indicators from various functions like purchasing, finance, transportation, warehousing etc. Whenever a problem occurs, it’s notified. Such notification is known as event. In order to solve a problem, corrective measures have to be planned in order to be effective. Otherwise, PEMS becomes a mere reporting system.
PEMS results in effective monitoring of supply chain. It helps in saving time from reporting work that can be utilized in other important works. Automatic events generation reduce human errors. Timely corrective measures can result in great Return on Investment (RoI). Despite these advantages, if proper indicators are not monitored, it doesn’t generate desired result and may reverse the benefits.