CHAPTER 7

The Link between a Firm’s Profitability, Outbound Logistics Performance, and Its Performance Measurement Framework

Introduction1

As discussed in the previous chapter, a firm must choose a set of metrics to measure and monitor its supply chain performance. These metrics and key performance indicators (KPIs) are incorporated into a performance management system that should be aligned with a firm’s supply chain management framework, activities, and strategy. In this chapter we again consider performance management but narrow our focus to the outbound logistics component of a supply chain, and examine the impact of different outbound logistics strategies on a firm’s profitability.

Outbound logistics is defined by the Council of Supply Chain ...

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