Supply chain metrics that matter intelligence node. Two methods are used in a supply chain to view how the. In this report series we provide a deep focus on progress over the past. As the founder of supply chain insights and the author of supply chain shaman, lora travels the world to chart the course of supply chain practices and disruptive technologies. Most discussions and articles about supply chain metrics are, in actuality, about internal logistics performance measures. The financial ratios used enable supply chain leaders to better understand where the industry is on the. Chain metrics that matter report, we share insights from each of these metrics categories. Time when companies look at selecting supply chain performance metrics, they usually will examine those metrics that relate to time, as they are easily calculated, easily understood, and clearly show. The research shows that continually building value at all. Applying advanced decisionmaking capabilities, enabling smarter growth and promoting inspirationbased talent management are this years most common trends among supply chain leaders. Dec 08, 2014 supply chain metrics that matter is a story about how to do just that.
The better the companys system for metrics, the more their operations performance improves, and the more their business and financial performance improves. Applying advanced decisionmaking capabilities, enabling smarter growth and promoting inspirationbased talent management are this. Jan 07, 2015 lora cecere is the supply chain shaman. Supply chain performance measurement in the manufacturing. Does it matter to your customers if an order ships early, or is this considered ontime. In each supply chain metrics that matter report, we share insights from each. Due to the fact that the supply chain is a complex system that must be managed holistically, we. The supply chain metrics that matter report series is an analysis of supply chain excellence for a. Modern supply chain execution systems warehouse, labor, and transportation produce a.
Access to society journal content varies across our titles. Supply chain measurements can cover many areas including procurement. Ask any supply chain leader which metrics are the most important to deliver, and the most common answers are operating margin, inventory turns, and revenue growth. Within the world of supply chain management scm, each industry is unique. Improving supply chain resiliency 18 mar 2014 from lora cecere full report pdf click here view more documents from abby mayer, lora cecere and supply chain insights. Supply chain metrics that matter strategic management. All 17 key metrics for supply chain management that you ever need updated view larger image to make rapid decisions in todays fastacting environment, we need smart, timesaving, easy to interpret and most importantly decisionsupporting key performance indicators or even better actionable insights. This concept has been attributed to such varied sources as management. The purpose of supply chain integration is to break down the silos across the whole supply chain, allowing the firm to. Linking supply chain practices to operational and financial. Supply chain metrics that matter is a series of monthly reports published from august, 2012 through present time by supply chain insights llc. If you have access to a journal via a society or association membership, please browse to your society journal, select an article to.
Twentyeight percent stated that their supply chain leader reported to the ceo. Assuming you can start with a clean slate, are there any guiding principles to selecting the right metrics. Cecere is the founder of the research firm supply chain insights. Peppered with realworld examples from across industries, supply chain metrics that matter reinforces ideas with evidence. A shaman interprets and connects an evolving world to a group of followers. Many supply chain management decisions continue to be made as though driving with the rear view. The department of defense dod supply chain metrics guide is the main source for detailed information on the supply chain metrics used by the department. When i meet with my customers, i get thumbsdown feedback. The goal is to help supply chain leaders understand what is possible in driving supply chain excellence programs. The book links corporate financials to supply chain maturity. Metrics for effective supply chain execution now well look at specific examples of some of the more common and effective metrics used in warehousing and distribution to give you a good head start on developing your own.
Cecere is a supply chain researcher as well as an authority in supply chain technology. The purpose of supply chain integration is to break down the silos across the whole supply chain, allowing the firm to move closer to overall optimized rather than suboptimized management. Supply chain integration includes supplierside collaboration. The effective supply chain makes a difference in winning a war, saving a patient, and driving commerce. What are supply chain metrics and how are they most useful.
In this report, we share a framework for supply chain excellence that. In this report we take a closer look at, and share insights on, the hightech industry. Lora cecere is the founder and ceo of supply chain insights, the research firm thats paving new directions in building thoughtleading supply chain research. Only onefifth of respondents strongly felt that their. Bricks matter 2012, shamans journal 2014 and supply chain metrics that matter december 2014. When set against your profits, market share and other metrics, your supply chain cost can, of course, be a determining factor in the current. As called out by dod supply chain materiel management procedures in dod manual 4140.
Supply chain metrics that matter supply chain insights. Jul 20, 2016 armies of management consultants have come up with ways to integrate supply chain metrics into the balanced score cards that are used to run companies. They allow organizations to analyze risks and provide supply chain managers. By adrian gonzalez when it comes to supply chain and logistics, figuring out the right approach to measuring performance is a challenge. In celebration of the launch of lora ceceres second book metrics that matter, join lora and a group of guest panelists as they discuss insights from the book and how it relates to their companies. All 17 key metrics for supply chain management that you ever. Supply chain metrics that matter 2014, by lora cecere. Armies of management consultants have come up with ways to integrate supply chain metrics into the balanced score cards that are used to run companies. Interview with lora cecere, founder and ceo of supply chain insights and author of supply chain metrics that matter. In celebration of the launch of lora ceceres second book metrics that matter, join lora and a group of guest panelists as they discuss insights from the. Process view of a supply chain management a supply chain is a process and a flow that works in order between and within the different phases of a supply chain so that a company can fulfill the demands of a customer. Update on the progress of supply chain leaders on progress on the supply chain effective frontier balancing growth, profitability, cycles and complexity.
Philippe lambotte, svp of merck, recommends a seat at the table, focus on supply chain strategy, eliminate the white noise, and stay the course. Supply chain metrics that matter supply chain movement. Dec 22, 2014 supply chain metrics that matter was written to guide businesses through the change process with a measurementbased outlook that will help any organization stand the test of time. The series starts in may when fullyear corporate reporting is complete for the prior year. Metrics programs are key to supply chain success step 1.
The goal is to help supply chain leaders understand what is possible in driving supply chain. Jul 02, 2012 why metrics matter the right supply chain metrics can help you answer three key questions. When your company implements a new supply chain execution system warehouse, labor. In each supply chain metrics that matter report, we share insights from each of these metrics categories. Now in its ninth year, the supply chain top 25 continues to offer a platform for debate. The supply chain process should be supported by the product life cycle. The metrics are categorized in five performance attributes. The total cost of all business functions involved in procurement orders. Metrics that matter metrics matter in business performance. Process view of a supply chain management a supply chain is a process and a flow that works in order between and within the. Usually, there are three things that companies do wrong when trying to measure the performance of their organization.
Supply chain metrics that matter is a series of publications published monthly by supply chain insights llc. Supply chain management kpi encyclopedia these kpis are further categorized into seven major groups. Commonly used by supply chain management, metrics can help. The supply chain metrics that matter report series is an analysis of supply chain excellence for a specific industry. Plank and others published supply chain metrics that matter, by lora m. Metrics for effective supply chain execution now well look at specific examples of some of the more common and effective metrics used in warehousing and distribution to give you a good head start on.
Metrics, pharmaceutical and supply chain supply chain brief. To make rapid decisions in todays fastacting environment, we need smart, timesaving, easy to interpret and most importantly decisionsupporting key performance indicators or even better actionable. The complete guide to supply chain metrics supply chain brain. Understand the structure of scor there are over 250 scor metrics that are organized in a hierarchical and codified structure from organization level 1 to process level 2 to diagnostic level 3. A supply chain transformation cannot happen in less than three years. These reports are based on data collected from financial balance sheets and income statements over the period of 20002012. By using a fictionalized case that aggregates the authors three years of intensive research, supply chain metrics that matter provides an engaging and useful way to. The health of a global supply chain isnt just measured by revenue and profit. In our plotting of industry results for the supply chain metrics that matter report s, we could see that certain. When it comes to supply chain and logistics, figuring out the right approach to measuring performance is a challenge. In the book, the author analyzes which metrics matter. Supply chain metrics that matter by lora cecere supply. Supply chain metrics that matter is a series of publications issued monthly by supply chain insights llc. The lack of a widely accepted definition for supply chain management and.
Do you know what it means to have a perfect order measure of 94%. Supply chain metrics that matter linkedin slideshare. The ability to answer these questionsin an accurate and timely mannercan lead directly to superior business performance. What it is, what its not and how it works the supply chain ecosystem is a complex one especially for multinational. Sep 04, 2017 when i meet with my customers, i get thumbsdown feedback. Purchase this document today to identify and begin measuring the right metrics to measure supply chain effectiveness. Bringing the power of gis to supply chain management. Aug 30, 20 update on the progress of supply chain leaders on progress on the supply chain effective frontier balancing growth, profitability, cycles and complexity.
Supply chain metrics that matter makes this truth clear enough with its thorough analysis of recent multiindustry performance trends. Why metrics matter the right supply chain metrics can help you answer three key questions. The author, head of a supply chain research firm, supply. In this report, we share a framework for supply chain excellence that balances growth, profitability, cycles and complexity metrics. Supply chain leader interview for metrics that matter my kitchen table is piled high with interviews for the upcoming book, metrics that matter. Supply chain measurements or metrics such as inventory turns, cycle time, dpmo and fill rate are used to track supply chain performance. The goal of these metrics is to provide a key set of indicators, aligned with the business strategy, that provide early warnings of problems or early signals of successful project completion. Commonly used by supply chain management, metrics can help you to understand how your company is operating over a given period of time. The total cost of all business functions involved in procurement orders, including planning, purchasing, inventory control, traffic, receiving, incoming inspection and salvage. All 17 key metrics for supply chain management that you. Due to the fact that the supply chain is a complex system that must be managed holistically, we share the trends on each of these dimensions over the course of the last decade. It shouldnt be a surprise that the total cost of your supply chain operation is a fundamental part of your strategy, regardless what type of supply chain youre running.
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