Supply Chain Management For Dummies

Chapter 16

Adopting Supply Chain Metrics

IN THIS CHAPTER

Focusing on performance attributes

Identifying metrics and key performance indicators

Measuring operational, financial, and human performance

There’s a common saying in supply chain management circles: “What gets measured, gets done.” Almost everything about a supply chain can be measured, either directly or indirectly. Metrics give you data and allow you to make decisions based on facts rather than on hunches. But measurement costs money because you need to invest in ways to capture the data and because you have to store that data so that you can access it when you need it.

It pays to be smart about what you measure, how you measure it, and what you do with the information that you collect. This chapter examines different ways to measure the performance of your supply chain and how to select metrics that will help you manage trade-offs and drive improvements.

Understanding Metrics

Supply chain measurements are usually called metrics. They’re reference points that help you monitor whether your people, processes, and technology are performing the way that you want and expect them to.

Metrics fall into two broad categories:

• Quantitative: ...