Supply Chain Metrics

What to measure? How can the value of a measurement be balanced against the cost of performing it? How can the needs of different organizations requiring similar measures of the same thing be reconciled and those needs be met efficiently? What are the implementation issues? How can redundant measures be simplified? This executive briefing discusses these questions and outlines a catalog of more than eighty measurements for consideration. Some of the cataloged measurements are common, some are industry-specific, and some have unique and special purposes. Each measurement is discussed in terms of its usefulness and application. Implementation difficulties are reviewed and the executive is cautioned where inaccuracies may result from assumptions made by implementers. A review of the list may suggest metrics that should be considered for implementation, may help users avoid the GIGO syndrome, and may reduce business complexity by pointing out duplication in existing work.