Supply Chain Performance Measures

Develop a tiered structure for the metrics 4 identify

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Unformatted text preview: cture for the metrics 4. Identify metric ―owners‖ and tie metric goal achievement to an individual’s or division’s performance evaluation. Developing Supply Chain Performance Metrics 5. Establish a procedure to resolve conflicts arising from metric development and implementation. 6. Establish consistency with corporate strategies and objectives. 7. Establish top management support for the development of a supply chain metrics program Performance Categories (Time, Quality, Costs, Other) Customer Service Impacts The Supply Chain–Finance Connection The Supply Chain can be a strong contributor (or detractor) to improving financial performance. Cost of providing logistics service affects the marketability of the product and impacts profitability. Financing inventory affects the amount of capital available to fund other parts of the business. Supply Chain impact on ROA Supply Chain impacts on the Balance Sheet Supply Chain Decisions and ROA Figure 5-19 Supply Chain Service Failure Annual orders Rehandling cost Summary – How Can Logistics add Value to the Corporation? Result Example Better...
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