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Using Supply Chain Management Metrics to Improve Performance


Simply stated, supply chain management metrics are what helps you track the performance of your supply chain. These supply chain management metrics can include Inventory Turns, Cycle Time or Fill Rate; any process that involves your supply chain. The supply chain management metrics will allow you to track the progress of your company over a set period of time.

Common Supply Chain Management Metrics

Aside from the Inventory Turns, Cycle Time and Fill Rate that was mentioned above, supply chain management metrics can be put in place for procurement, production, distribution, warehousing, transportation and customer service, among other areas. In reality, any are of your company’s logistics can be tracked with supply chain management metrics. Focusing on each of the key supply chain management metrics will allow you to keep track of your business and ensure that you are meeting the goals you have set.

Improve Processes with Supply Chain Management Metrics

By implementing supply chain management metrics you will be able to track the performance of your supply chain in comparison to previous years or your competition. This will allow you to see first hand how your company “stacks up” against the rest. Once the supply chain management metrics are in place you will be able to use the results to fix the “weakest links” in your supply chain. The supply chain management metrics will give you real numbers for any area that you choose so you can see how each area of your supply chain in managing their work load.

How to Choose the Proper Supply Chain Management Metrics for your Company

When implementing supply chain management metrics in your company you want to ensure that you are choosing the proper ones to gain the most benefits. Here is a guide on how to choose the proper supply chain management metrics.

  • Decide which areas of your company you want to track.
  • Understand fully what each supply chain management metric means and how the goals can be met.
  • Uncover any factors that may influence the results of your supply chain management metrics.
  • Identify any weaknesses that may cause your metrics to have a poor result.
  • Set goals for each of the areas you choose to implement supply chain management metrics.
  • If any corrective action is needed to meet your goals, implement it now.
  • Monitor all results that you find from your supply chain management metrics.

If you follow these steps you will likely be able to implement successful supply chain management metric. If something goes wrong in the processes you will need to identify which area is having the problem and take corrective action to fix it.

When all Else Fails, Try Supply Chain Management Metrics

If you have tried other methods of improving your supply chain before and your attempts have failed, try supply chain management metrics. They are entirely based off of goals that you set for your company and they are monitored by you. You will be able to see the weaknesses and strengths of your company so that you know what areas you should focus on. Supply chain management metrics can be the key to turning a profit rather than netting a loss.