6. World Class Supply Chain Performance

World class supply chains cost-efficiently source, produce, and deliver thousands of products to customers every day while achieving high standards for reliability and customer service. Supply chains exist in complex, rapidly evolving environments. Much of the complexity comes from the fact that almost all supply chains consist of collections of multiple companies working together toward the achievement of mutually established goals (Mentzer, 2004). Determining how effective supply chain companies are in achieving these goals is the role of performance measurement.

This chapter explains the need for supply chain performance measurement and provide the rationale that companies use when creating their supply ...

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