When it comes to measuring the health and performance of your supply chain, qualityin terms of kpisis usually better than quantity, and a simple hierarchy of metrics comprising 17 kpis is typically sufficient for any company to assess supply chain performance, conduct initial problemdiagnosis, and even drill down to the root causes. I believe that we should encourage people to move across the organization to get a greater understanding of the business. Supply chain performance refers to the extended supply chains activities in meeting endcustomer requirements, including product availability, ontime delivery, and all the necessary inventory and. Supply chain metrics that matter makes this truth clear enough with its thorough analysis of recent multiindustry performance trends. When your company implements a new supply chain execution system warehouse, labor. The research shows that continually building value at all points along the value chain is the key to sustained success. Building resilience in supply chains, developed during phase ii of the initiative, explores government and industry sector views on systemic supply chain risks and building a resilience framework to manage them. Metric computation of explanationmetrics definition metrics 1.
The book links corporate financials to supply chain maturity. The metrics are categorized for each stage of the supply chain with definition provided at the back of the document. Every ceo must always be concerned with the competition. Other major items include corporate administrative expenses such as accounting and finance, planning, human resources, research and development, and maintenance of.
Choosing the right metrics, however, can be more difficult than it sounds. Philippe lambotte, svp of merck, recommends a seat at the table, focus on supply chain strategy, eliminate the white noise, and stay the course. Improve your supply chain performance with an effective metrics process presented by mark chockalingam, ph. Supply chain councils scor model the supply chain councils scor model provides guidance on the types of metrics one might use to get a balanced approach towards measuring the performance of ones overall supply chain. The goal is to help supply chain leaders understand what is possible in driving supply chain excellence programs. Supply chain metrics article pdf available in the international journal of logistics management 121. For example, one company might measure delivery performance against the customers desired date, while another may measure delivery against a negotiated delivery date. Input your email to sign up, or if you already have an account, log in here. The report findings are based on expert level workshops and data gathering throughout 2012. In this report we take a closer look at, and share insights on, the hightech industry. The supply chain metrics that matter report series is an analysis of. Dependability, responsiveness, cost, asset efficiency. The dod supply chain metrics guide is the result of collaboration with the military departments.
May 25, 2017 when it comes to measuring the health and performance of your supply chain, qualityin terms of kpisis usually better than quantity, and a simple hierarchy of metrics comprising 17 kpis is typically sufficient for any company to assess supply chain performance, conduct initial problemdiagnosis, and even drill down to the root causes. She is also the author of the enterprise software blog supply chain shaman. This concept has been attributed to such varied sources as management guru peter drucker, sir william thomson, also known as lord. The supply chain metrics that matter report series is an analysis of supply chain excellence for a specific industry. The objective of this document is define a bench marking framework capable of. Lora cecere is the founder and ceo of supply chain insights, the research firm thats paving new directions in building thoughtleading supply chain research. Browse metrics and quality content selected by the supply chain brief community.
The supply chain must then use the three logistical and three crossfunctional drivers to reach the performance level the supply chain strategy dictates and maximize the supply chain profits. The most commonly published metrics were quality, air emissions, energy use, and greenhouse gas emissions. But as anyone working in the manufacturing industry knows, there is a lot of work that goes into ensuring everything goes smoothly. This is a brief introductory tutorial that explains the methodologies applied in the rapidly. Most discussions and articles about supply chain metrics are, in actuality, about internal logistics performance measures. R ecently, institute for supply man age ment ism surveyed supply chain leaders about departmental performance metrics. There are hundreds of metrics that can be used to score supply chain management performance. Jun 27, 2016 supply chain metrics may include measurements for procurement, production, transportation, inventory, warehousing, material handling, packaging and customer service. Further reproduction prohibited without permission. Supply chain metrics that matter linkedin slideshare. Cecere is a supply chain researcher as well as an authority in supply chain technology. Sep 04, 2017 lora cecere is the founder and ceo of supply chain insights, the research firm thats paving new directions in building thoughtleading supply chain research. Pdf most discussions and articles about supply chain metrics are, in actuality, about internal logistics performance measures. Supply chain management i about the tutorial supply chain management can be defined as the management of flow of products and services, which begins from the origin of products and ends with the products consumption at the enduser.
A supply chain metrics framework that is meaningfully aligned to corporate goals and is suitably supported by causeandeffect guided analysis enables internal business functions like sales, marketing, manufacturing, etc. The text that appears on this website is the opinion of the webmaster. In our plotting of industry results for the supply chain metrics that matter report s, we could see that certain. May 14, 2007 a supply chain metrics framework that is meaningfully aligned to corporate goals and is suitably supported by causeandeffect guided analysis enables internal business functions like sales, marketing, manufacturing, etc. Give your data purpose so you can effectively manage your supply chain metrics. Updating the supplychain councils implementation model how. Next, there is a section on each of the eight processes. But as anyone working in the manufacturing industry knows, there is a lot of work that goes into ensuring. Supply chain performance measurement in the manufacturing. Supply chain performance refers to the extended supply chains activities in meeting endcustomer requirements, including product availability, ontime delivery, and all the necessary inventory and capacity in the supply chain to deliver that performance in a responsive manner. The 3 key supply chain metrics to improve your performance. The department of defense dod supply chain metrics guide is the main source for detailed information on the. To schedule a customized onsite workshop, please contact us.
My newest course research methods can be found under following link for a discounted price 14. Scor is a supply chain process reference model containing over 200 process elements, 550 metrics, and 500 best practices including risk and environmental management organized around the five primary management processes of plan, source, make, deliver and return any interested organization can participate in its continual development. Supply chain metrics vary from one organization to another. In the book, the author analyzes which metrics matter.
Metrics programs are key to supply chain success step 1. Pdf this survey paper starts with a critical analysis of various performance metrics for supply chain management scm, used by a specific. It affects all areas of the value chain, the established supply chain and operations processes, and the metrics a company utilizes. Industry agenda building resilience in supply chains. Track critical parts of supply chain with ready to use kpis. The lack of a widely accepted definition for supply chain management and.
For each level 1 performance metric, the template includes a working definition, benchmark sources, main level 2 components, main level 3 components, and a simple data keeping scor updating the supplychain councils. My newest course research methods can be found under following link. Supply chain metrics that measure up supply and demand. Roles of supply chain management in construction proceedings iglc7 7 the first step is to assess the current process across the supply chain in order to detect actual waste and problems. As an example, the supply chain leverage of several worldclass companies has set the bar quite high. Public health programs need supply chains they can rely on for ensuring product availability where and when needed. Top content on metrics as selected by the supply chain brief community. If you are having troubles with your research paper, i might have a solution for you. The supply chain operations reference model scor has been developed. The issue here is to find the causality between the waste and problems, and locate their root causes. Web workshop, onsite workshop at your location, or as a public training course. Is your supply chain procurement department tracking and reporting the correct measures. Especially through analyzing and improving the supply chain, significantly increased performance can be achieved.
Overall inventory turns annual cost of goods sold company info. Simple metrics for your supply chain how to define the first key measurements and distributing products and services. Supply chain metrics that matter is a series of industryspecific reports published throughout the year by supply chain insights llc. This project offers a set of metrics that provide supply chain managers with a forwardlooking.
A taxonomy of metrics used for both scpmss and operational pmss is. Although this framework is generally viewed from the top down, in many instances, a study of the six drivers may indicate the need to change the supply. The strategic or level1 metrics measure the overall performance of the supply chain. The diagnostic or level2 metrics are useful to diagnose performance issues. Very complex supply chains tend to offer such a huge amount of. In this report series we provide a deep focus on progress over the past.
Aug 30, 20 update on the progress of supply chain leaders on progress on the supply chain effective frontier balancing growth, profitability, cycles and complexity. Manufacturing is the backbone to most of what we take for granted. The performance of the supply chain function is measured by metrics grouped in 4 attributes. Sep 26, 2014 the most commonly published metrics were quality, air emissions, energy use, and greenhouse gas emissions. Supply chain metrics are an important tool for measuring progress against goals, and benchmarking is an excellent way to establish the goals for improvement programs.
The guide also includes functional level metrics that measure performance specific to the functions of inventory management and distribution management. Managing and controlling public sector supply chains 73. Browse metrics content selected by the supply chain brief community. This is the actual scorecard with supply chain measures and performance indicators. Once the causality is understood, and having found out. Implementing supply chain performance indicators or metrics is one of the simplest, least expensive. Supply chain guide to implementing and using metrics. Many supply chain management decisions continue to be made as though driving with the rearview mirror. All who use the scormodel are asked to acknowledge the scc in all documents describing. Measuring supply chain performance usaid global health.
In todays economy the battlefield is shifting from individual company performance to what we call supply chain performance. Update on the progress of supply chain leaders on progress on the supply chain effective frontier balancing growth, profitability, cycles and complexity. The study provides a snapshot of metrics currently being used by supply chain and procurement departments to. Other major items include corporate administrative expenses such as accounting and finance, planning, human resources, research and development, and maintenance of administrative facilities. The scor model approach advocates a set of supply chain performance measures comprised of a combination of. For any supply chain, there is only one source of revenue. Supply chain measurements or metrics such as inventory turns, cycle time, dpmo and fill rate are used to track supply chain performance. Effective use of supply chain metrics remains elusive for many companies. Jan 09, 2017 discusses key supply chain drivers and metrics. Every company today runs on data the key to using your data is choosing the right metrics for visibility into your supply chain.
For information on inventory turns, fill rate measurement, backorder reporting or any other logistics supply chain management measurements metric, click on the links to the left. Supply chain di ddrivers and metrics universitas lampung. The series starts in may when fullyear corporate reporting is complete for the prior year. Here we provide a summary of gartner research to help coe executives assess their maturity, plan their implementation journey, and analyze data to identify and prioritize improvement initiatives. Commonly used by supply chain management, metrics can help you to understand how your company is operating over a given period of time. Performance metrics in supply chain management article pdf available in journal of the operational research society 005. Performance management in supply chain and operations deloitte. Philippe lambotte, svp of merck, recommends a seat at the table, focus on supply chain strategy, eliminate the. A closer look at supply chain excellence april 26, 20 p. The blog focuses on the use of enterprise applications to drive supply chain excellence. Metrics may or may not be uniform across all industries. How to establish early warning supply chain metrics was first posted on october 11, 2017 at 10. Each decision should be made to raise the supply chain surplus. Ask any supply chain leader which metrics are the most important to deliver, and the most common answers are operating margin, inventory turns, and revenue growth.
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