Coyle Chapter 5 PowerPoint Slides

Coyle Chapter 5 PowerPoint Slides - Chapter 5: Supply Chain...

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Chapter 5: Supply Chain Performance Measurement and Financial Analysis Learning Objectives After reading this chapter, you should be able to do the following: Understand the scope and importance of supply chain performance measurement. Explain the characteristics of good performance measures. Discuss the various methods used to measure supply chain costs, service, profit, and revenue. Understand the basics of an income statement and a balance sheet. Demonstrate the impacts of supply chain strategies on the income statement, balance sheet, profitability, and return on investment. Understand the use of the strategic profit model. Analyze the financial impacts of supply chain service failures. Utilize spreadsheet computer software to analyze the financial implications of supply chain decisions.
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Introduction: The purpose of this chapter is to: (1) introduce the dimensions of supply chain performance metrics, (2) discuss how supply chain metrics are developed, (3) offer some methods for classifying supply chain metrics, and (4) use quantitative tools to show how these metrics can be linked to the financial performance of the organization.
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Questions about a metric: “Is it quantitative?” “Is it easy to understand?” “Does it encourage appropriate behavior?” “Is the metric visible?” “Does the metric encompass both outputs and inputs?”
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Questions about a metric: “Does it measure only what is important?” “Is it multidimensional?” “Does the process use economies of effort?” “Does it facilitate trust?”
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Figure 5-2 What Supplier Performance Metrics Do Companies Use? On-time delivery 90%
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Coyle Chapter 5 PowerPoint Slides - Chapter 5: Supply Chain...

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