• NAPM (US):
Purchasing.
• Kaiser Associates:
Benchmark Specialist Consultant.
• US University Research: New global initiative (investigating entry opportunities—Bob Ackerman).
– Supply chain benchmarks and best practice (Dow Polyurethane & Epoxy April 1995). – Supply Chain Benchmark Assessment (March 1997). – Supply chain appraisal and benchmarks: (client X September 1997).
• The Supply Chain CoE’s objective is to define a benchmarking framework capable of:
– Comparing generic metric performances for use on projects. – Capturing further benchmarking data in a consistent format.
chain. – Suggest how the supply chain CoE should continue concerning this topic.
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We used information from several sources during our project
• Internal and external documents:
Purchasing (& Supply Chain).
• APICS (US):
Supply Chain.
• CAPS (US):
Purchasing & Supply Chain (US & Legal):
– Research Benchmark Industry Listings (http://www.capsresearch//htm).
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Performance measurement is an important but complex subject
Companies see the need for metrics. . .
• “If you can’t measure, you can’t manage, you can’t motivate”
• The London Shop’s task:
– Develop an overview of the different metrics to measure supply chain performance. – Select the most important metrics that can be used across industries. – Discuss how the most important metrics link other operational metrics within each stage of the supply
Focus
. . . but developing the “right” set of metrics is a challenge
• No commonly used “model”.
• Business issues that warrant performance measurement:
– Differ between industries. – Differ within industry. – Change overtime.
• Discussions with supply chain CoE:
– Graham Colclough. – Andrew Morgan. – Lee Sherman. – Deborah Huff
Possible data sources
• CIPS (UK):
– High level benchmarking framework for supply chain performance (H .Cook): • Shop Study (March 1997) accessing information from available experts and past projects.
Supply Chain Performance Metrics
Process, Recommendations
This document gives an overview of the different metrics that can be used to measure supply chain performance
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We used a generic supply chain framework as a basis for our analysis . . .
• Establishing the proper measures within an organisation enhances continuous
Linking strategy to action
Accountability
Assigning accountability to take action when needed
Communication
Measuring progress towards goals through
interactive communication and
education
There is no one “right” answer
This document’s an initial step in the right direction.