Supply Chain Performance & Metrics (PDF)

Supply Chain Performance & Metrics document gives an overview of key performance metrics used to measure the operating effectiveness of a supply chain. The metrics are categorized for each stage of the supply chain with definition provided at the back of the document.

The objective of this document is define a bench marking framework capable of:
•  Comparing generic metric performances for use on projects.
•  Capturing further bench marking data in a consistent format.

The task:
•  Develop an overview of the different metrics to measure supply chain performance.
•  Select the most important metrics that can be used across industries.
•  Discuss how the most important metrics link other operational metrics within each stage of the supply
chain.
•  Suggest how the XYZ should continue concerning this topic.

See also "Supply Chain Strategy Tools & Techniques"
See also "4 Stage Model Supply Chain Assessment"

This document emphasizes the importance of performance measurement in supply chain management, highlighting that while metrics are essential for managing and motivating, developing the right set of metrics is a challenge. It addresses the need for a tailored approach, as business issues vary between and within industries and evolve over time. The document serves as an initial step in the right direction, providing a framework for linking strategy to action, assigning accountability, and enhancing communication and education.

We also began with a brainstorming session on the key drivers for quality, time, and cost, examining the supply chain from the customer's perspective. This led to the identification of potential performance issues and the development of KPIs to pinpoint where problems lie within the supply chain. The document includes a hierarchy of measures, suggesting key KPIs and supporting metrics to dig through the causal tree and improve business performance.