Supply Chain Performance Evaluation
A key to effective supply chain management is fact-based evaluation of performance of supply chain partners.
These evaluations should be on-going (bordering on real-time), objective (i.e. quantitative whenever possible), and directly linked to customers' escalating service quality expectations.
For example, customers reasonably expect at least:
- Hassle-free order entry (prompt, user-friendly)
- High fill rates (available when ordered)
- Consistent cycle times (predicable order to receipt times)
- Dependable deliveries (on time, intact)
- Timely order tracking (real-time status)
- Accurate invoicing (right quantities and prices)
- Appropriate post-sales service (installation, returns, repairs)
Specific metrics should be adopted that measure performance along these dimensions.