A very promising model for supply chain strategic decision making allows firms to perform very thorough fact based analysis of all aspects of their supply chain by providing a complete set of. Apr 05, 2019 metrics for supply chain security along with cost, schedule, and performance. Esteemed consulting organizations such as ibm, booze allen and gartner have all developed supply chain maturity models. In this report we take a closer look at, and share insights on, the hightech industry. Supply chain metrics that matter makes this truth clear enough with its thorough analysis of recent multiindustry performance. Supply chain maturity models the road maps designed to help organizations track the evolution of their supply chains from its most basic state to a highly sophisticated collaborative business function are not new. Supply chain management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. Supply chain measurements or metrics such as inventory turns, cycle time, dpmo and fill rate are used to track supply chain performance. Supply chain management is uniquely situated to be the cost monitor at your company. The supply chain metrics that matter report series is an analysis of supply chain excellence for a specific industry. Many supply chain management decisions continue to be made as though driving with the rear view mirror.
An audit capability for key suppliers supply chain processes. A dynamiccapabilities framework bongsug kevin chae department of management. Implementation of scrm requirements into contractual language with third party vendors. The interviews were conducted in an as open format as possible, and. The complete guide to supply chain metrics supply chain brain.
The three sections on traditional supply chain metrics, essential digital supply chain metrics, and the transformation maturity. A closer look at supply chain excellence april 26, 20 p. The study provides a snapshot of metrics currently being used by. Scor is the worlds leading supply chain framework, linking business processes, performance metrics, practices and people skills into a unified structure. An important goal of supply chain analytics is to improve forecasting and efficiency and be more responsive to customer. Metrics for effective supply chain execution now well look at specific examples of some of the more common and effective metrics used in warehousing and distribution to give you a good head start on developing your own. Drivers of supply chain performance however, it is necessary to properly integrate both the internal and the external supply chains and be inter supporting to ensure supply chain success, bratic, 2011, as given in figure 2.
This paper proposes a framework of business analytics for supply chain analytics sca as itenabled, analytical dynamic capabilities composed of data management capability, analytical supply chain process capability, and supply chain performance management capability. In this example, we see a watch list of supply chain metrics in the upper right with the capability to drill down to the details of these metrics. As part of a metrics survey published by mesa international and lns research1, 28 manufacturing metrics were identified. In each supply chain metrics that matter report, we share insights from each. Supply chain dashboards track inventory levels, logistics management, and. Integrating the supply chains of vaccines and other health commodities. Supply chain dashboards inventory and logistics kpi reports. Change digital supply chain metrics and you will change behavior. Warehousing ensures everyone has the same set of metrics, rules and assumptions to help them meet common goals. The guide also includes functional level metrics that measure performance specific to the functions of. Stanford supply chain forum call it distribution or logistics or supply chain management. Sep 04, 2017 when i meet with my customers, i get thumbsdown feedback. The second part of druckers quote, if you cant measure it, you cant improve it, really brings home the importance.
Harris key metrics key metrics cost reduction collaborate with suppliers to achieve the best results engineering redesignsvalue engineering material changes early supplier involvement in. Supply chain metrics that matter is a series of industryspecific reports published throughout the year by supply chain insights llc. Measuring supply chain performance through kpi identification and. The goal is to help supply chain leaders understand what is possible in driving supply chain. Commonly used by supply chain management, metrics can help. Supply chain metrics gaining visibility in a datarich world. Supply chain analytics is the application of mathematics, statistics, predictive modeling and machinelearning techniques to find meaningful patterns and knowledge in order, shipment and transactional and sensor data. Modern supply chain execution systems warehouse, labor, and transportation produce a. The gartner hierarchy of supply chain metrics has long been regarded as the industry standard for endtoend supply chain performance measurement. Ability to verify compliance with applicable laws, regulations, and industry standards. The goal is to help supply chain leaders understand what is possible in driving supply chain excellence programs. Supply chain business solutions apics for business. Performance metrics in supply chain management article pdf available in journal of the operational research society 005. However, within an asc there is a greater tendency for companies to keep their own identity or autonomy than.
Ultimately, we hope to do more than just improve our supply chain. In this report, we share a framework for supply chain excellence that balances growth, profitability, cycles and complexity metrics. Pdf most discussions and articles about supply chain metrics are, in actuality, about internal logistics performance measures. Metrics and supply chain visibility supply chain brief. Presented in a digestible pie chartstyle format with a key showcasing the. Introduction an agrifood supply chain asc is a network of individual companies that delivers agricultural products to end consumers. Performance assessment of global supply chains and moving. The performance of the supply chain function is measured by metrics grouped in 4 attributes. The series starts in may when fullyear corporate reporting is complete for the prior year. By whatever name it is the sinuous, gritty, and cumbersome process by. Transforming your supply chain to a digital supply chain means adding new metrics to determine the success of your efforts to drive change. Youll also get insight into our current projectsand a glimpse at what the future holds.
Supply chain excellence in the pharmaceutical industry. The book links corporate financials to supply chain maturity. The second part of druckers quote, if you cant measure it, you cant improve it, really brings home the importance of having the right set of metrics. Dependability, responsiveness, cost, asset efficiency. Is your supply chain procurement department tracking and reporting the correct measures. What are supply chain metrics and how are they most useful.
Supply chain leader interview for metrics that matter my kitchen table is piled high with interviews for the upcoming book, metrics that matter. 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. Because the supply chain is a complex system that must be managed holistically, we share the. Drivers of supply chain performance however, it is necessary to properly integrate both the internal and the external supply chains and be inter supporting to ensure supply chain success, bratic. In the book, the author analyzes which metrics matter.
Pdf every ceo must always be concerned with the competition. For many businesses supply chain management is the key to success and. The study provides a snapshot of metrics currently being used by supply chain and procurement departments to. The strategic or level1 metrics measure the overall performance of the supply chain. Supply chain and procurement key financial performance metrics. Balanced scorecard metrics and specific supply chain roles. In todays economy the battlefield is shifting from individual company performance to. The series starts in may when fullyear corporate reporting is complete for. Supply chain metrics that matter is a series of reports published. It is also crucial to the daily operations of each stage in a supply chain for e. They allow organizations to analyze risks and provide supply chain managers. Metrics for supply chain security along with cost, schedule, and performance.
Due to the fact that the supply chain is a complex system that must be managed holistically, we. Being able to measure supply chain performance is important since it leads to a. Within the pharmaceutical industry there are many sources of. Leonczuk 2016 sc performance is the ability of the entire supply chain to meet endcustomer needs, associated with ensuring the availability of product, deliver it on time in the right way and.
Supply chain driver and metrics chopra free pdf file sharing. The guide also includes functional level metrics that measure performance specific to the functions of inventory management and distribution management. The goal of these metrics is to provide a key set of indicators, aligned with the business strategy, that provide early warnings of problems or early signals of successful project completion. Within the world of supply chain management scm, each industry is unique. Articlespublicationsdocumentsaerospacedefense outlook20. Supply chain di ddrivers and metrics supply chain di ddrivers and metrics. Within the world of supply chain management scm each industry is unique. Information is used for the following purpose in a supply chain. R ecently, institute for supply man age ment ism surveyed supply chain leaders about departmental performance metrics. Transforming your supply chain to a digital supply chain means adding new metrics to determine the success of your efforts to drive. Supply chain metrics that matter is a series of monthly reports published from august, 2012. When i meet with my customers, i get thumbsdown feedback. The gartner supply chain hierarchy of metrics benchmarking.
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. Harris supply chain metrics and supplier expectation. Within the pharmaceutical industry there are many sources of operational efficiencies which contribute to excellence. 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. Introduction an agrifood supply chain asc is a network of individual companies that delivers agricultural products to end consumers christopher, 2005. Is your supply chainprocurement department tracking and reporting the correct measures. The reports on the bottom right provide three different views into forecasted. Commonly used by supply chain management, metrics can help you to understand how your company is operating over a given period of time. A supply chain dashboard is a reporting tool used to track supply chain kpis and metrics in a single display or interface. Scor uses the historical data of the supply chain to see how it performs and develops, it.
I find the measurement of customer service to be one of the most difficult. Jan 01, 2005 what are supply chain metrics and how are they most useful. Further reproduction prohibited without permission. Costeffectiveness analysis of supplier performance based. The department of defense dod supply chain metrics guide is the main source for detailed information on the. Supply chain analytics is the application of mathematics, statistics, predictive modeling and machinelearning techniques to find meaningful patterns and knowledge in order, shipment and transactional. The dod supply chain metrics guide is the result of collaboration with the military departments. Harris key metrics key metrics cost reduction collaborate with suppliers to achieve the best results engineering redesignsvalue engineering material changes early supplier involvement in new design on time delivery goal 100% 5 days early 0 days late quality harris part qualification program ppm. Supply chain metrics your small business should be tracking. Now gartner has translated this framework into a dynamic benchmark database that enables you to compare key supply chain performance metrics with your peers. Metrics play a key role in the profitable management of a warehouse and in an organizations overall supply chain success. In our plotting of industry results for the supply chain metrics that matter report s, we could see that certain. Balanced scorecard metrics and specific supply chain roles 1. A class session will be devoted to each of the eight supply chain processes as well as to topics such as.
Integrating the supply chains of vaccines and other health. By identifying all the various supply chain actors and the supply chain stages they are active in, it can be easier to identify. In each supply chain metrics that matter report, we share insights from each of these metrics categories. This project offers a set of metrics that provide supply chain managers with a forwardlooking. When it comes to supply chain metrics, beauty is in the eye of the beholder. Many supply chain management decisions continue to be made as though driving with the rear view. Metrics data supply chain supply chain performance 192. We hope to challenge and inspire our industry to do the same. Metrics for effective supply chain execution now well look at specific examples of some of the more common and effective metrics used in warehousing and distribution to give you a good head start on. Do you know what it means to have a perfect order measure of 94%. The supply chain 2020 project was intended to provide insight into major research questions about the future of supply chain excellence.
Of course, none of the cost analyses or metrics are any good if they are not accurate. One way to look at the supply chain is that it is the route that materials and supplies move along from their point of origin to their final point. Understand how your supply chain organization, distribution center or manufacturing site measure against competitors to close performance gaps. Supply chain maturity models the road maps designed to help organizations track the evolution of their supply chains from its most basic state to a highly sophisticated collaborative business function are.