Measuring the Impact of Supply Chain Performance
- Topics:
- Logistics Planning
- Tags:
- Cash-to-Cash Cycle Time,
- Enterprise Software,
- Software,
- Supply Chain,
- Supply Chain Management (SCM)
- Source:
- Penton Media
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Overview: The article suggests how to achieve continuous improvement in supply chain. It provides a step-by-step guide for using the supply chain council’s SCOR Model that measures both business and supply chain performance from a process point of view. It is based on delivery performance, order fulfillment lead time, supply chain response time, total supply chain management, total returns management - warranty cost, cash to cash cycle time etc. Delivery Performance is a discrete measure defined the percentage of customer orders delivered “on time and in full” to customer request date and/or to customer commit date. Cash-to-Cash Cycle Time is a continuous measure that is calculated by adding the number of days of inventory to the number of days of receivables outstanding and then subtracting the number of days of payables outstanding. Total Supply Chain Management Cost is a discrete measure defined as the fixed and operational costs associated with the Plan, Source, Make and Deliver supply chain processes.
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Format: PDF | Size: 81KB | Date: Dec 2003 | Pages: 6
