In the book, the author analyzes which metrics matter. I find the measurement of customer service to be one of the most difficult. The purpose of supply chain integration is to break down the silos across the whole supply chain, allowing the firm to move closer to overall optimized rather than suboptimized management. Many supply chain management decisions continue to be made as though driving with the rear view. Applying advanced decisionmaking capabilities, enabling smarter growth and promoting inspirationbased talent management are this. The author, head of a supply chain research firm, supply.
What it is, what its not and how it works the supply chain ecosystem is a complex one especially for multinational. All 17 key metrics for supply chain management that you ever need updated view larger image to make rapid decisions in todays fastacting environment, we need smart, timesaving, easy to interpret and most importantly decisionsupporting key performance indicators or even better actionable insights. Does it matter to your customers if an order ships early, or is this considered ontime. The series starts in may when fullyear corporate reporting is complete for.
Understand the structure of scor there are over 250 scor metrics that are organized in a hierarchical and codified structure from organization level 1 to process level 2 to diagnostic level 3. Due to the fact that the supply chain is a complex system that must be managed holistically, we. Most discussions and articles about supply chain metrics are, in actuality, about internal logistics performance measures. In each supply chain metrics that matter report, we share insights from each. The book links corporate financials to supply chain maturity. The ability to answer these questionsin an accurate and timely mannercan lead directly to superior business performance. Bringing the power of gis to supply chain management. Time when companies look at selecting supply chain performance metrics, they usually will examine those metrics that relate to time, as they are easily calculated, easily understood, and clearly show. The total cost of all business functions involved in procurement orders, including planning, purchasing, inventory control, traffic, receiving, incoming inspection and salvage. Process view of a supply chain management a supply chain is a process and a flow that works in order between and within the. The research shows that continually building value at all. These reports are based on data collected from financial balance sheets and income statements over the period of 20002012.
The supply chain metrics that matter report series is an analysis of supply chain excellence for a specific industry. Chain metrics that matter report, we share insights from each of these metrics categories. Improving supply chain resiliency 18 mar 2014 from lora cecere full report pdf click here view more documents from abby mayer, lora cecere and supply chain insights. The financial ratios used enable supply chain leaders to better understand where the industry is on the. Two methods are used in a supply chain to view how the. The goal of these metrics is to provide a key set of indicators, aligned with the business strategy, that provide early warnings of problems or early signals of successful project completion. Supply chain metrics that matter is a series of publications issued monthly by supply chain insights llc. This concept has been attributed to such varied sources as management. What it is, what its not and how it works the supply chain ecosystem is a complex one especially for multinational companies that work with suppliers all over the world. Linking supply chain practices to operational and financial.
In each supply chain metrics that matter report, we share insights from each of these metrics categories. It shouldnt be a surprise that the total cost of your supply chain operation is a fundamental part of your strategy, regardless what type of supply chain youre running. Jul 02, 2012 why metrics matter the right supply chain metrics can help you answer three key questions. When set against your profits, market share and other metrics, your supply chain cost can, of course, be a determining factor in the current. Applying advanced decisionmaking capabilities, enabling smarter growth and promoting inspirationbased talent management are this years most common trends among supply chain leaders.
Process view of a supply chain management a supply chain is a process and a flow that works in order between and within the different phases of a supply chain so that a company can fulfill the demands of a customer. The department of defense dod supply chain metrics guide is the main source for detailed information on the supply chain metrics used by the department. In this report we take a closer look at, and share insights on, the hightech industry. Supply chain metrics that matter strategic management. In celebration of the launch of lora ceceres second book metrics that matter, join lora and a group of guest panelists as they discuss insights from the.
The series starts in may when fullyear corporate reporting is complete for the prior year. Usually, there are three things that companies do wrong when trying to measure the performance of their organization. Assuming you can start with a clean slate, are there any guiding principles to selecting the right metrics. All 17 key metrics for supply chain management that you ever. Update on the progress of supply chain leaders on progress on the supply chain effective frontier balancing growth, profitability, cycles and complexity. The complete guide to supply chain metrics supply chain brain. Dec 22, 2014 supply chain metrics that matter was written to guide businesses through the change process with a measurementbased outlook that will help any organization stand the test of time. When i meet with my customers, i get thumbsdown feedback.
In our plotting of industry results for the supply chain metrics that matter report s, we could see that certain. Only onefifth of respondents strongly felt that their supply chain department is delivering enough value to their company. Modern supply chain execution systems warehouse, labor, and transportation produce a. Plank and others published supply chain metrics that matter, by lora m. The supply chain metrics that matter report series is an analysis of supply chain excellence for a.
When it comes to supply chain and logistics, figuring out the right approach to measuring performance is a challenge. Commonly used by supply chain management, metrics can help you to understand how your company is operating over a given period of time. Supply chain metrics that matter is a series of publications published monthly by supply chain insights llc. Within the world of supply chain management scm, each industry is unique. Twentyeight percent stated that their supply chain leader reported to the ceo. This concept has been attributed to such varied sources as management guru peter drucker, sir william thomson, also known as lord kelvin, and w. Supply chain metrics that matter 2014, by lora cecere. The goal is to help supply chain leaders understand what is possible in driving supply chain.
Supply chain metrics that matter by lora cecere supply. Aug 30, 20 update on the progress of supply chain leaders on progress on the supply chain effective frontier balancing growth, profitability, cycles and complexity. Interview with lora cecere, founder and ceo of supply chain insights and author of supply chain metrics that matter. A supply chain transformation cannot happen in less than three years. The better the companys system for metrics, the more their operations performance improves, and the more their business and financial performance improves. The following four key metrics tell the performance story when it comes to supply chain effectiveness. Jan 07, 2015 lora cecere is the supply chain shaman. Supply chain metrics that matter supply chain insights. Jul 20, 2016 armies of management consultants have come up with ways to integrate supply chain metrics into the balanced score cards that are used to run companies.
A shaman interprets and connects an evolving world to a group of followers. The health of a global supply chain isnt just measured by revenue and profit. Metrics that matter metrics matter in business performance. Supply chain metrics that matter is a series of monthly reports published from august, 2012 through present time by supply chain insights llc. Cecere is a supply chain researcher as well as an authority in supply chain technology. In the management of the supply chain there are many metrics. Ask any supply chain leader which metrics are the most important to deliver, and the most common answers are operating margin, inventory turns, and revenue growth.
In celebration of the launch of lora ceceres second book metrics that matter, join lora and a group of guest panelists as they discuss insights from the book and how it relates to their companies. Do you know what it means to have a perfect order measure of 94%. Supply chain metrics that matter makes this truth clear enough with its thorough analysis of recent multiindustry. The effective supply chain makes a difference in winning a war, saving a patient, and driving commerce. Philippe lambotte, svp of merck, recommends a seat at the table, focus on supply chain strategy, eliminate the white noise, and stay the course. The supply chain process should be supported by the product life cycle. In this report, we share a framework for supply chain excellence that balances growth, profitability, cycles and complexity metrics. Supply chain metrics that matter intelligence node. Bricks matter 2012, shamans journal 2014 and supply chain metrics that matter december 2014. Supply chain performance measurement in the manufacturing. All 17 key metrics for supply chain management that you.
To make rapid decisions in todays fastacting environment, we need smart, timesaving, easy to interpret and most importantly decisionsupporting key performance indicators or even better actionable. The total cost of all business functions involved in procurement orders. If you have access to a journal via a society or association membership, please browse to your society journal, select an article to. Only onefifth of respondents strongly felt that their. The purpose of supply chain integration is to break down the silos across the whole supply chain, allowing the firm to. Metrics for effective supply chain execution now well look at specific examples of some of the more common and effective metrics used in warehousing and distribution to give you a good head start on. The metrics are categorized in five performance attributes. Access to society journal content varies across our titles. Metrics programs are key to supply chain success step 1. Peppered with realworld examples from across industries, supply chain metrics that matter reinforces ideas with evidence. Why metrics matter the right supply chain metrics can help you answer three key questions. By adrian gonzalez when it comes to supply chain and logistics, figuring out the right approach to measuring performance is a challenge. As the founder of supply chain insights and the author of supply chain shaman, lora travels the world to chart the course of supply chain practices and disruptive technologies. Supply chain management kpi encyclopedia these kpis are further categorized into seven major groups.
Now in its ninth year, the supply chain top 25 continues to offer a platform for debate. Metrics, pharmaceutical and supply chain supply chain brief. Supply chain measurements can cover many areas including procurement. As called out by dod supply chain materiel management procedures in dod manual 4140. The lack of a widely accepted definition for supply chain management and. Purchase this document today to identify and begin measuring the right metrics to measure supply chain effectiveness. They allow organizations to analyze risks and provide supply chain managers. In this report, we share a framework for supply chain excellence that. Supply chain metrics that matter linkedin slideshare. Supply chain leader interview for metrics that matter my kitchen table is piled high with interviews for the upcoming book, metrics that matter. Sep 04, 2017 when i meet with my customers, i get thumbsdown feedback.
Dec 08, 2014 supply chain metrics that matter is a story about how to do just that. Armies of management consultants have come up with ways to integrate supply chain metrics into the balanced score cards that are used to run companies. What are supply chain metrics and how are they most useful. Supply chain integration includes supplierside collaboration. Supply chain metrics that matter makes this truth clear enough with its thorough analysis of recent multiindustry performance trends. Supply chain measurements or metrics such as inventory turns, cycle time, dpmo and fill rate are used to track supply chain performance.
In this report series we provide a deep focus on progress over the past. The goal is to help supply chain leaders understand what is possible in driving supply chain excellence programs. Supply chain metrics that matter is a series of industryspecific reports published throughout the year by supply chain insights llc. Due to the fact that the supply chain is a complex system that must be managed holistically, we share the trends on each of these dimensions over the course of the last decade.