Supply Chain Metrics and Systemic Outcomes
Performance measurement in the logistics function, like all business functions, begins at the individual metric level. A performance measurement system that is well designed at the strategic level can be flawed at the individual metric level; the Achilles’ Heel of any measurement system. The pressing need is not for the development of novel performance metrics: there is a great abundance of sufficient metrics already in existence. Rather, there is a need for a method with which to evaluate existing metrics. This paper addresses this need by suggesting a set of evaluation criteria for individual logistics performance metrics and identifying the inherent trade-offs. A taxonomy of logistics performance metrics, organized by process rather than by function, is also presented and the metrics are evaluated using the established criteria.
Adrian Cockroft:
“Good insights into how to setup metrics that lead to the right systemic outcomes, focused on supply chain logistics as the domain, which is an area that’s becoming more important for various reasons.”