Measuring Supply Chain Management Performance
Supply Chain Management (SCM) is the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole (Mentzer et al, 2001).
There are more aspects to consider when having a business line in Supply Chain Management, such as distribution strategy and network configuration, logistical and warehousing activities, inventory management and reverse logistics.
When considering specific Supply Chain Management activities and specific performance measures, these can be grouped in different subcategories. www.smartKPIs.com suggests the following subcategories and specific performance indicators for Supply Chain Management:
Logistics / Distribution:
- # Total warehouse storage space
- # Loading time per vehicle
- % Reverse logistics cost to delivered sales value
Procurement / Purchasing:
Supply Chain Management:
- % Fill rate for ship-from-stock
- # Software used to support supply chain
- % Supply chain related order management cost
To access over 300 Supply Chain, Procurement, Distribution KPI examples visit www.smartKPIs.com
- Mentzer, T.J. , (2001), Supply Chain Management, Sage Publications Inc., London
- smartKPIs.com (2010), “KPI examples for the Supply Chain Management”