Assignment: Supply Chain Performance Measures

Introduction

A general description of supply chain performance measures and their importance in organizations.

Definition

The commonly used definition of supply chain performance measures are given in this section.

Reasons for supply chain performance measures
Motivate Organizational actions
Basis for decision making
Closed loop management
Growth of supply chain performance measures

This section outlines the keymilestones in the evolution of supply chain performance measures. Some of the key stages in the development include traditional cost accounting systems, enhanced systems for cost accounting, mixed systems, and finally, the balanced integrated systems.

Supply Chain Performance Measures categories

The two main categories of supply chain performance measures are discussed in this section. These include qualitative and quantitative measures.

Quantitative measures

This subcategory is divided into financial and nonfinancial measures.

Financial Measures

These are measures taken to estimate different operational and fixed costs that are related to supply chain management.

Non-financial measures

In this subsection, four different types of non-financial measures are discussed. These are: cycle time, inventory levels, customer service level, and resource utilization. Cycle time includes two key time components namely: order-to-delivery lead time as well as supply chain lead time. There are four measures used to gauge customer service level. These are stock-out rate, order-fill rate, the likelihood of on-time delivery, and backorder level. Inventory levels discussed include raw materials, work in process, finished goods, and spare parts inventory.

Qualitative measures

These include measures meant to improve customer satisfaction.
Other Supply chain performance measures categories
Activity-based costing
Economic value added
Supply chain balanced scorecard
Supply-chain operations reference model
Dimension-based measurement systems
Generic performance measurement systems
Performance prism
Performance pyramid
Medori and Steeple's Framework

Conclusion

This gives a recap of the main points discussed in the various sections of the paper.