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    Performance indicators to evaluate performance of supply chain

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    Key Supply Chain Performance Indicator Paper

    ? Select three key supply chain performance indicators from the following list:

    o Customer service levels
    o Queue line
    o Fill rates
    o Total network inventory
    o Scrap rate
    o On-time delivery
    o Cost/order placed
    o Orders picked/hour
    o Inventory turns
    o Inventory carry costs
    o Forecast accuracy
    o Return on assets
    o Shrinkage rates
    o Manufacturing cycle time

    ? Prepare a paper in which you describe the importance of your selected indicators. Include an answer to the following question: What information would be required to utilize these performance indicators to evaluate the performance of a supply chain?

    ? Format the paper according to APA standards.

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    Key Supply Chain Performance Indicators
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    Key supply chain performance indicators are the topic of analysis in relation to the following three gauges: (1) Customer service levels; (2) Total network inventory; and (3) Manufacturing. This text explores evaluation or effectiveness of the supply chain, and describes the importance of the selected three metrics for successful business operation. In addition, requirements for utilizing performance indicators to evaluate performance of the supply chain are discussed.

    Key Supply Chain Performance Indicators
    Supply Chain Performance
    Federal Express (Fedex) references, "Supply chain management is the efficient and effective movement of goods and information from supplier to manufacturer to the end user. Looking at supply chain management from a cost standpoint, it represents the total expenses incurred by a company to acquire materials, maintain inventory, process and fulfill orders, manage transportation, deliver to end-customers, and manage information systems throughout the process.
    In some industries, companies spend approximately 10 - 11% of their revenue just managing their supply chain. Independent research firms, such as AMR and International Data Corporation, project that by 2005, investments made in these segments will exceed half a trillion dollars. Several factors contribute to these trends, including:
    * Increased globalization of business
    * Shift to collaborative commerce
    * Development of powerful supply chain visibility and event management tools
    * Increased focus on just-in-time
    *Adoption of outsourced logistics
    *Carrier consolidation
    Research shows that investments in services and technologies that improve supply chain performance continue to pay real dividends for business. Improving your supply chain performance can have a dramatic impact on your business."

    "Managing the Global Supply Chain" says the role of logistics and supply chain management is to support customer value. However, the interesting question is how a company assesses how capable the current state of its supply chain is: How capable the setup is now, or in the last period to deliver customer value? How layout and supply chain processes might be changed in order for customer value to improve?
    Some contributions discuss supply chain performance as more or less equal to customer service. Others contributions discuss the same as the amount of resource utilization or cost consumed in order to deliver customer service. However, it is argued that supply chain performance is a three-dimensional construct. For a company to measure this, it must consider perfomance in mutually supportive dimensions that include effectiveness, efficiency, and flexibility."

    Performance Indicators
    ? Inventory Management
    QuickMBA references, "To minimize supply and demand imbalances in the supply chain, firms utilize various methods of total inventory management. The problem is complicated by the fact that demand is uncertain, and this uncertainty can cause stockouts in which inventory is depleted and orders cannot be ...

    Solution Summary

    The performance indicators to evaluate performance of supply chain is examined.