Supply chain management measuring

Velocity, or time, is an important aspect of supply chain management. Measurement of time performance are ... 

Hieber R (2001) Supply Chain Management A Collaborative Performance Measurement Approach, vdf Hochschulverlag, ETH Zurich... 

Regulators and customers require assurance in consistency of pharmaceutical and biopharmaceutical manufacturing operations. Today s manufacturing supply chains require multiple sites in varying locations to produce a product. Quality systems must be perceived as an integral part of the value chain. This requires that all sites be compliant in their operations and systems. Strong areas in one location do not make up for weak or absent systems in another location. Fines are levied and business is made or lost based on the individual site or weakest link in the supply chain. Management must have a mechanism to measure its processes, and a comprehensive QMS is the mechanism to demonstrate capability. 

Agami, N., Saleh, M., and Rasmy, M. Supply chain performance measurement approaches Review and classification. Journal of Organizational Management Studies, pages 1-20, 2012. doi 10.5171/2012.872753. 

Bhagwat, R. and Sharma, M. K. Performance measurement of supply chain management A balanced scorecard approach. Computers Industrial Engineering, 53(l) 43-62, 2007. 

Wanke et al. (2010) argue that the perception of logistics systems being complex is confirmed by several authors, but it is not always clear what does it mean. They defined complexity in logistics in terms of quantifiable scales and based on the notion of numerous actors or parts that are interconnected and can be captured by measures such as the company s gross revenue, its number of supphers, active customers, number of employees, number of employees involved in supply chain management, active stock keeping tmits (SKUs), number of distribution centers, orders processed and new product launches per year. 

Performance measures drive behavior in any system. The selection of performance measures is crucial inside a firm and throughout the supply chain. Managers coordinate behavior of their employees and of their partners in the supply chain by the use of performance measures. It is through the use of measures that we are able to determine if we are making progress towards our goals. 

Chen, I., Paulraj, A. (2004). Towards a theory of supply chain management The constructs and measurements. Journal of Operations Management, 22, 119-150. 

Huang,Z., Gangopadhyay, A.A. (2004). Simulation study of supply chain managementto measure the impact of information sharing. Information Resources Management Journal, 77(3), 20. 

The primary measure for supply chain managers is cost. A common example is supply chain cost per dollar of sales. ... 

The plan calls for a sales price of 100 with an attractive gross margin before distribution costs of 40. Distribution costs add 10 per unit to the cost. It is likely that the supply chain manager is measured on whether the costs of distribution meet the 10 expectation. The first year sales forecast calls for 100,000 units, producing expected revenues of 10 million. However, this is an innovative product, so actual demand is uncertain. Demand, in the case of the widget, may in fact be significantly more or less than the forecast of 100,000 units. 

The statistics for quality have been around for a long time. Common performance measures include Pp, Pp, Cp, Cp first-time capability (FTC), line speed, and defective parts per million (ppm). This section provides an overview of common process capability terms and addresses their importance in supply chain management. 

DMIAC Define, Measure, Analyze, Improve, and Control. A process for implementing supply chain changes associated with the Six Sigma improvement process. (A foundation for operational excellence, Supply Chain Management Review, March/April 2003)... 

Smeltzer, Larry R. and Manship, Jennifer A., How good are your cost reduction measures , Supply Chain Management Review, May/June 2003, PP- 28-33-... 

VaR models were first developed for the financial industry in the early 1990s. They are considered as a standard measure for market risk and used extensively in portfolio risk management. From the financial point of view, VaR measures the maximum possible loss in the market value of a given portfolio. Considering the characteristics of VaR type risks caused by rare events, the concept of VaR can be applied to risk quantification in supply chain management also. 

Particularly relevant to the supply chain management function, their model for logistical performance measurement (Figure 8.3) assesses each process horizontally in terms of time, quality, and cost, and vertically at each phase of the process ... 

All these measures are part of supply chain management. They often lead to consolidation or integration (internal or external). M. Abrahamsson and S. Brege (1997, p. 40) proposed a model of international distribution systems comprising a number of different areas involving structural changes related to the entire supply chain ... 

The effectiveness of S OP depends on its purpose, something that should be included in the long-term company development vision relating to supply chain management. The S OP implementation process should involve all operational areas of the company and its effects should be controlled by top management. The effective introduction of S OP in an organisation requires specific measures. S OP project implementation is made up of various stages, for example ... 

Regardless of how proficiency criteria are determined, all the above models present the road to excellence understood as the fulfilment of supply chain management principles. The levels of excellence most frequently pertain to selected supply chain processes or resources. Less often, they relate to conditions that should come with improvements. Issues related to the circumstances (background) of process and resources excellence are very important, as the low effectiveness and unsatisfactory efficiency of measures imdertaken in this area is often caused by ignorance on the part of the entities initiating and implementing SCM principles. 

As the deliberations presented herein show, a supply chain s social capital is not much discussed in theory or applied in business practice. It seems that tradition and the effective promotion of the macroeconomic approach to social capital have dominated the application of any relevant theories in practice in the public sector. This is probably why social capital is regarded by business environments as an unknown and uncontrollable external factor of company and supply chain operation. A similar situation is found with respect to the social capital of companies. It was concluded, too quickly and easily, that this invisible resource of individual organisations could not be accurately measured, and that one could therefore not influence its structure or level in order to adjust it to the needs of supply chain management. 

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