Measures of Supply Chain Performance

Paper Summary:

The paper looks at the metric of the Perfect Order that is a measure of performance that consolidates contributions from the other supply chain measures of performance. The paper provides a table that offers a summary of the most often used series of metrics by manufacturing and services companies alike and another table that specifically shows the list of metrics that are most influenced by a synchronized and consistent supply chain strategy. The paper then shows how for Dell and their unique build-to-order model, these metrics of supply chain performance form the basis of how their company runs daily.

Outline:
Executive Summary
Measuring the Perfect Order
Supply Chain Measures of Performance
The Impact of Supply Chain Metrics on Financial Performance
Summary

From the Paper:

"Supply chain measures of performance, often called key performance indicators (KPIs) or metrics of performance are gaining in popularity within many companies due to the following factors. First, there is the growth of analytics software making it possible to generate these metrics. Next, there are higher levels of collaboration throughout supply chains making the data sharing possible to accomplish these measures of performance. Third, greater inventory velocities are proving possible with better insights and more accurate reporting of supply chain performance gained through higher levels of collaboration."

Sample of Sources Used:

• AMR Research (2003) - Configuration is the Heart of Customer Fulfillment for Complex Product Manufacturers. AMR Research Report. Monday March 31, 2003. Retrieved from the Internet on June 17, 2007 from: http://lwcresearch.com/filesfordownloads/ConfigurationIstheHeartofCustomerFulfillmentforComplexProductManufacturers.pdf
• Cecere, L., Hagerty, J., Souza, J. (2005) - How Best To Measure Your Supply Chain Today.AMR Research, March 3, 2005 Boston, MA
• Hofman (2004) -The Hierarchy of Supply Chain Metrics: Diagnosing Your Supply Chain Health. Debra Hofman. AMR Research, Boston, MA. February 18, 2004

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• Case Study # 107487 : "Cessna: Supply Chain Management"

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