Principles of Supply Chain Management, Second Edition, 2nd Edition

279Procurement/Purchasing

product quality, purchase prices, and total cost (Petersen et al. 2005). Another measure that

is gaining favor is the cash-to-cash cycle time.

One forecast for purchasing and supply predicted “there will be an intellectual ght

over designing metrics that are very specic for particular chains” (Carter et al. 2000).

They doubt there will be a standard set of metrics that can be used throughout the sup-

ply chain. Others advocate the use of economic value added (EVA) as a measure, because

of its recognition of the contribution of revenue, operating costs, and capital investment

(Monczka and Morgan 2000). A system designed ...