Supply chain performance customer services level

Use multiple metrics to evaluate global supply chain networks. Because one metric can give only part of the picture, it is beneficial to examine network design decisions using multiple metrics such as firm profits, supply chain profits, customer service levels, aud response times. Good decisions perform well along most relevant metrics. 

For the individual firm, the goal is to find the most efficient way to offer the desired level of customer service (see Figure 8). For the supply chain, the goal is to improve overall efficiency by reallocating functions, and therefore costs, among its members. The level of customer service offered by the individual member firms, for example, will have a significant impact on other members and total supply chain performance. 

Since risk pooling has both posihve and negative impacts on supply chain performance, mulhple criteria models have been used to analyze the tradeoff between inventory reduction and customer service. Glasserman and Wang (1998) quantified the tradeoff between lead times and inventory levels to achieve required fill rates. They developed a linear slope relahonship between lead hme and inventory level for a given fill rate. Lodree et al. (2004)... 

Describe supply chain coordination and the bullwhip effect, and their impact on supply chain performance. Supply chain coordination requires all stages to take actions that maximize total supply chain profits. A lack of coordination results if different stages focus on optimizing their local objectives or if information is distorted as it moves across the supply chain. The phenomenon that fluctuation in orders increases as one moves up the supply chain from retailers to wholesalers to manufacturers to suppliers is referred to as the bullwhip effect. This effect results in an increase in all costs in the supply chain and a decrease in customer service levels. The bullwhip effect moves all parties in the supply chain away from the efficient frontier and results in a decrease of both customer satisfaction and profitability within the supply chain. 

The last step of the framework is to develop a supply chain strategy that will allow the company to identify the steps required to become a demand driven supply chain. This development should be performed aligned with the company strategic business planning process, as supply chain is a key enabler of business improvement and can help the company achieve top level business goals like revenue growth, increase asset utilization and profitability, improve customer service, just to name a few examples. 

Standard multidimensional metrics are used and cover forecast accuracy, customer service, inventory levels and costs, and are aligned with different echelons (e.g., customers) to share performance goals in the supply chain. 

Harmonization of internal objectives with superior the supply chain initiatives utilization and strategic conform ratio of minimizing costs and maximizing flexibility High performance level (degrees of service and quality) for the end customer... 

In the first part of the model, s is calculated. This step is necessary to ensure comparability, due to a different understanding of logistics customer service in theory and practice. Generally, logistics customer service is operationalized into four service factors lead time, delivery reliability, quality and flexibility (Lambert Stock, 1993). Since the service fiictors can be influenced by an SCI, it is reasonable to analyze service factors that are rooted in logistics. The actual level of s is determined by conjoining performance and importance of the named service factors. The subsequent approach is applied to the fuzzy performance measurement method for supply chains, introduced by Chan et al (2003) and improved by Theeranuphattana Tang (2008). 

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