Supply Chain Performance

1. Measuring Supply Chain Performance
Classification of Supply Chain
Performance

2.  Supply chain performance measure can be defined as an approach
to judge the performance of supply chain system. Supply chain
performance measures can broadly be classified into two categories :
Qualitative measures − For example, customer satisfaction and
product quality.
Quantitative measures − For example, supply chain response time,
flexibility, resource utilization, delivery performance.
Measuring Supply Chain Performance

3.  Performance management is frequently mentioned as an
important management task to achieve objectives.
 PMS (Performance Management system ) are comprehensive
accountability systems designed to measure and evaluate both
financial and non-financial indicators to enhance visibility and
transparency.

4. Need Of Measuring Supply Chain Performance
 Support better decision making
 Support better communication.
 Provide performance feedback.
 Motivate and Direct Behaviour.

5. Classification of Supply Chain Performance
 Price performance Measures
 Cost effective measure
 Time related measure
 Administration and efficiency Measure
 Internal Customer Satisfaction
 Supplier performance Measure
 Logistic Metrics

6.  Price performance Measures
• Purchasing uses various indicators to evaluate price
performance measures.
• In other words , how effectively it spends purchase dollar.
• The most common price performance measures include actual
purchase price versus planned purchase price comparisons.

7.  Cost effective measure
The measures in this category focus attention on efforts to
reduce purchase costs.
Cost measures fall into two general categories. They are
• Cost Changes
• Cost Avoidance

8.  Time related measure
• Time to Market Target
This measure is the amount of time from concept to first
shipment of a product to the external customer.
• On Time Delivery
This measure indicate the degree to which suppliers are able to
meet customer schedule requirements.

9.  Administration and efficiency Measure
Management uses administration and efficiency measure to plan
purchasing annual administrative budget and to help control
administrative expenses during a budget period.
 Internal Customer Satisfaction
Companies are also applying measures that indicate the degree
of satisfaction with purchasing value add contribution. This is
typically done by surveying internal customers.

10.  Supplier performance Measure
• Supplier performance Measurement is an area in which many
firms have made great progress. Purchasers generally track supplier
quality, cost, and delivery along with the performance areas.
 Logistic Metrics
The objectives of logistics performance measurement is to
determine whether or not the organisation has improved
customer service at lower logistics costs and reduction in the
cost of services.

11. Thank You