The sole use of traditional financial and cost performance measures does not adequately reflect the performance of an organization or guarantee success. A measurement of processes is required in order to continuously improve and provide value for the customer.
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Expand each of the following to learn more about some supply chain performance metrics, as well as other procurement metrics.
Order Fulfillment metrics are a true measure of supply chain excellence and includes measurements for on-time delivery, and responsiveness.
Logistics metrics are the reduction of costs associated with inbound transportation.
Quality metrics measure the conformance to requirements and the level of allowable defects.
Supplier management metrics measure procurement’s performance in managing supplier relationships.
Technology and Innovation
Technology and innovation metrics measure how procurement uses technology to streamline the purchasing process.
Risk management metrics include the identification, measurement, and mitigation of risks related to procurement activities, such as security of supply.
Strategic performance metrics includes the ability of purchasing to support and contribute to overall corporate goals.
Review your understanding of supply chain metrics by dragging and dropping the type of metric to the area of performance it measures.