Supply Chain Metrics That Matter

In today's fast-paced business environment, it is more important than ever to have a well-functioning supply chain. A supply chain is the network of organizations, people, activities, information, and resources that are involved in the production and delivery of a product or service. A well-managed supply chain can help businesses to reduce costs, improve customer service, and increase agility. To manage a supply chain effectively, it is important to track and measure its performance. This is where supply chain metrics come in.

Supply Chain Metrics that Matter (Wiley Corporate F&A)

by Lora M. Cecere

4.1 out of 5

Language	:	English
File size	:	12559 KB
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Screen Reader	:	Supported
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What are Supply Chain Metrics?

Supply chain metrics are quantifiable measures that can be used to track and assess the performance of a supply chain. These metrics can be used to identify areas for improvement and to make decisions about how to allocate resources. There are many different supply chain metrics that can be used, but some of the most common include:

• Inventory turnover: This metric measures how efficiently a company is managing its inventory. A high inventory turnover rate indicates that a company is able to sell its inventory quickly and avoid having to hold excess inventory.
• Days of inventory on hand: This metric measures how long, on average, it takes a company to sell its inventory. A high number of days of inventory on hand indicates that a company is holding too much inventory.
• Order fulfillment rate: This metric measures the percentage of orders that are shipped on time and complete. A high order fulfillment rate indicates that a company is able to meet its customers' needs.
• Customer service level: This metric measures the level of customer satisfaction with a company's supply chain. A high customer service level indicates that a company is providing its customers with a positive experience.

How to Use Supply Chain Metrics

Supply chain metrics can be used in a variety of ways to improve supply chain performance. Some of the most common uses include:

• Identifying areas for improvement: Supply chain metrics can be used to identify areas where a supply chain is not performing as well as it could be. For example, a company with a low inventory turnover rate may need to improve its inventory management practices.
• Making decisions about how to allocate resources: Supply chain metrics can be used to make decisions about how to allocate resources. For example, a company with a high number of days of inventory on hand may need to reduce its inventory levels.
• Tracking progress over time: Supply chain metrics can be used to track progress over time and identify trends. For example, a company may track its order fulfillment rate over time to see if it is improving.

Supply chain metrics are a valuable tool for improving supply chain performance. By tracking and measuring the performance of a supply chain, businesses can identify areas for improvement and make decisions about how to allocate resources. This can lead to reduced costs, improved customer service, and increased agility.

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Supply Chain Metrics that Matter (Wiley Corporate F&A)

by Lora M. Cecere

4.1 out of 5

Language	:	English
File size	:	12559 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	383 pages
Lending	:	Enabled

FREE