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Retail & Supply Chain Professionals |
Supply Chain Management in FMCG |
Logistics & Warehouse management |
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Question posted: 05 23 2008 02:17:09 +0000,
2 answers, 179 views, last activity
07 06 2010 20:18:08 +0000
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Top Answer :
Rating : +1
There are many parameters for measuring supply chain performance. Perhaps the most commonly accepted one is the total cost of the supply chain. The SCOR (supply chain operations reference) model is a comprehensive model which deals with measuring supply chain performance and can be used by a variety of firms.
by
Dr. Siddharth Varma, Professor, International Management Institute
| 06 03 2009 06:43:03 +0000
Prev1NextShowing 1 - 1 of 2
Rating : +1
I would start with the key business measures important for any business. These will be in any CEO's scorecard.
Volume & Sales/market share/volume growth
Gross Margins and Profit/margin improvement/
Free Cash.
Supply chain measures should support these measures.
For volume and sales key supply chain measures would be customer service (OTIF, LFR, Perfect Orders) and quality
For gross margins - total delivered cost as a % of sales, cost/unit
when it gets shipped to the customer (can be further drilled down to
RM/PM cost, Mfg overheads, logistics costs,etc)
For free cash - inventory is the supply chain measure. inventory $,
inventory days (absolute dollars tells you only half the story). supply
chain velocity and forecast accuracy will determine the inventory in
the system.
You can have a cascading set of measures that can go down from the
strategic to the tactical to the operational aspects of the business.
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