Supply chain performance metrics information

In this chapter, our goal is to link key financial measures of firm performance to supply chain performance. We introduce the three logistical drivers—facilities, inventory, and transportation—and the three cross-functional drivers—information, sourcing, and pricing—that determine the performance of any supply chain. We discuss how these drivers are used in the design, planning, and operation of the supply chain. We define several metrics that can be used to gauge the performance of each driver and its impact on financial performance. 

INFORMATION-RELATED METRICS A manager should track the following information-related metrics that influence supply chain performance ... 

For shippers and transportation providers, an important metric is the total supply chain cost of transportation transactions. This total supply chain cost includes the effect on both transport costs and associated inventory costs. In addition, measures of performance include delivery lead time, percent on-time delivery or delivery within time windows, and schedule flexibility to accommodate shipment reschedules. Given the large volume of shipments that occur on dedicated contract trucking, there is scope for use of information, coordination agreements, and associated capadty commitments to improve performance across a supply chain. Competing carriers sell bundled routes to minimize shipper costs. 

With the supply chains identified, their configuration should be documented with flowcharts and supporting data. These need not be elaborate due to the time limitations of a prestudy. But they should convey an understanding of the basic stmcture of the chains. Accompanying the flowcharts should be metrics and other information that characterize current performance. 

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