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Unformatted text preview: easy to understand, involve employee input, and have
economies of effort. Important guidelines for metric development for logistics and supply chains
include consistency with corporate strategy, focus on customer needs,
careful selection and prioritization of metrics, focus on processes, use of a
balance approach, and use of technology to improve measurement
effectiveness. Summary (cont.) There are four principal categories for performance metrics: time,
quality, cost, and miscellaneous or support. Another classification for
logistics and supply chains suggests the following categories for
metrics: operations cost, service, revenue or value, and channel
satisfaction. The equivalent sales increase for supply chain cost saving is found
by dividing the cost saving by the organization’s profit margin. Supply chain management impacts ROA via decisions regarding
channel structure management, inventory management, order
management, and transportation management. Summary (cont.) Alternative supply chain decisions should be made in light of the
financial implications to net income, ROA, and ROE. The SPM shows the relationship of sales, costs, assets, and equity;
it can trace the financial impact of a change in any one of these
financial elements. Supply chain service failures result in lost sales and rehandling
costs. The financial impact of modifications to supply chain service
can be analyzed using the SPM....
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This note was uploaded on 10/25/2012 for the course WCOB 3613 taught by Professor Jamescrowell during the Fall '12 term at Arkansas.
- Fall '12