Our experience with clients is that they expect declining c2c values have been driven mainly through reducing free inventory within the supply. The metrics are categorized in five performance attributes. Understanding of metrics used for supply chain management 29 state of the art benefits from supply chain management should be achieved only in the case when. Pdf every ceo must always be concerned with the competition. Feel free to track lots more metrics in the background if you wish, but try to keep attention focused on the five or six real kpis.
Supply chain metrics that matter cecere, lora m download bok. Research supply chain metrics that matter is a series of reports published intermittently throughout the year by supply chain insights llc. In the book, cecere provides concrete, actionable steps. The supply chain must then use the three logistical and three crossfunctional drivers to reach the performance level the supply chain strategy dictates and maximize the supply chain profits. The hierarchy of supply chain metrics 1 the hierarchy of supply chain metrics. This paper proposes a framework of business analytics for supply chain analytics sca as itenabled, analytical dynamic capabilities composed of data management capability, analytical supply chain process capability, and supply chain performance management capability. A closer look at the cashtocash cycle 20002012 insights on building a healthcare value network.
Peppered with realworld examples from across industries, supply chain metrics that matter reinforces ideas with evidence. How to conquer the effective frontier and drive improved value in global operations growth has slowed. 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. A major item on the agenda is the announcement of what used to be named the amr top 25.
Sep 04, 2017 when i meet with my customers, i get thumbsdown feedback. When i meet with my customers, i get thumbsdown feedback. Supply chain metrics that matter delivers as advertised by focusing on useful ways to measure supply chain performance and then how to use the metrics effectively for managing a successful supply chain. This analysis thus focuses on four companies within the industry. Performance metrics in supply chain management article pdf available in journal of the operational research society 005. Excellent supply chain performance particularly, perfect order ratings leads to strong financial performance eps, roa, net profit margins performance measurement is critical to. Corporate performance is not a set it and forget it. As called out by dod supply chain materiel management procedures in dod manual 4140.
The ability to answer these questionsin an accurate and timely mannercan lead directly to superior business performance. Supply chain effectiveness and efficiency case of chinese onyx industry article pdf available in international journal of research 49. To help companies understand the differences, we share deep analysis in each report. In the book, cecere provides concrete, actionable steps to align and balance the supply chain to drive value. All 17 key metrics for supply chain management that you. Supply chain, manufacturing, logistics, transportation management, and more. In this report we take a closer look at, and share insights on, the hightech industry. The framework is intended to summarize the essentials.
Ppt the hierarchy of supply chain metrics powerpoint. A shaman interprets and connects an evolving world to a group of followers. The top five supply chain metrics reported organizationally are the same as those reported departmentally, namely ppv, inventory turnover ratio, % total spend managed, total spend revenue, and dio. Top impacts and risks sustainability impacts and risks are determined by industry, sector, size, geographic location and companyspecific practices and policies. 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. Larry lapide, who directed the research, and becky schneck allen.
The supply management metrics that matter in 2017 report, by gep and ardent partners, is the definitive source for this information. Most discussions and articles about supply chain metrics are, in actuality, about internal logistics performance measures. She is the author of the enterprise software blog supply chain shaman, which attracts 5,000 readers weekly. Philippe lambotte, svp of merck, recommends a seat at the table, focus on supply chain strategy, eliminate the white noise, and stay the course. The health of a global supply chain isnt just measured by revenue and profit. The better the companys system for metrics, the more their operations performance improves, and the more their business and financial performance improves. Di fs l ch i p fdrivers of supply chain performance. Free pdf downlaod supply chain metrics that matter wiley. Keep the following in mind when it comes to tracking transportation metrics. The series starts in may when fullyear corporate reporting is complete for the prior year.
Commonly used by supply chain management, metrics can help you to understand how your company is operating over a given period of time. The blog focuses on the use of enterprise applications to drive supply chain excellence. Supply chain metrics that matter a focus on the automotive industry. Supply chain metrics that matter makes this truth clear enough with its thorough analysis of recent multiindustry performance trends. 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 metrics that matter supply chain movement. 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. Lora cecere is the founder and ceo of supply chain insights, the research firm thats paving new directions in building thoughtleading supply chain research. Partner at altimeter group leader in open research.
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. If you are looking to track your transportation metrics better, feel free to. The supply chain metrics that matter report series is an analysis of supply chain excellence for a specific industry. Supply chain metrics your small business should be tracking. Pdf supply chain effectiveness and efficiency case of.
Supply chain performance measurement in the manufacturing. Risk assessment of new energy vehicle supply chain based. The study provides a snapshot of metrics currently being used by supply chain and procurement departments to gauge their performance and success. Supply chain di ddrivers and metrics supply chain di ddrivers and metrics. I find the measurement of customer service to be one of the most difficult. Jul 02, 2012 why metrics matter the right supply chain metrics can help you answer three key questions. The major environmental impact within nielsen s supply chain is the energy use within data centers, it infrastructure and generally large. 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. 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.
Ill start with an admission although ive spent the majority of my career as a supply chain professional, ive never been formally trained in the field. Ardent partners, the industry leader for supply management market research studies, assembled this invaluable collection of procurement and accounts payablerelated metrics by surveying more than 500 procurement. Ting shen at the mit center for transportation and logistics and edited by dr. Ardent partners supply management metrics that matter gep.
The study provides a snapshot of metrics currently being used by supply chain and procurement departments to. Linking supply chain practices to operational and financial performance supply chain 2020 project working paper august 2005 this paper was written by dr. The research shows that continually building value at all points along the value chain is the key to sustained success. The most important points are to link supply chain performance to the wider world, identify hotspots, and take action. Supply chain metrics that matter is a series of reports published throughout the year by supply chain insights llc. Supply chain metrics that matter by lora cecere supply. 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. Improvement in the c2c cycle is shown with decreasing numbers. While the name has changed, the methodology has remained fairly constant, with a only a few changes, since 2004.
Why metrics matter the right supply chain metrics can help you answer three key questions. Measuring the efficiency of a procurement process is important, as it plays a critical role in the supply chain in the case of an economic downturn. Managing quality integrating the supply chain 6th edition by foster solution manual 1 chapters updated mar 17, 2019 08. Linking supply chain practices to operational and financial. Is your supply chainprocurement department tracking and reporting the correct measures.
Its a wellknown axiom that an organizations success or failure rides on the effectiveness of its supply chain. 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. The lack of a widely accepted definition for supply chain management and. Jul 20, 2016 supply chain metrics that matter photo credit. This week, gartner is hosting their annual supply chain conference. In this report series we provide a deep focus on progress over the past. In the book, the author analyzes which metrics matter. In the supply management metrics that matter in 2017, ardent partners has assembled an invaluable collection of procurement and accounts payablerelated metrics by surveying more than 500 procurement and finance practitioners representing more than 25 distinct industries. She is also the author of the enterprise software blog supply chain shaman. Discover the critical metrics that matter to your csuite so they can see hr in a new light. Jan 07, 2015 lora cecere is the supply chain shaman. We augment this with two handselected companies that we believe provide a meaningful comparison. The saying if you cannot measure it, you cannot improve it holds as true as ever. We believe that it is dangerous to list all industries in a.
In our plotting of industry results for the supply chain metrics that matter report s, we could see that certain. That said, measuring and reporting supply chain sustainability is rarely about adding decimal places to impact calculations. What it is, what its not and how it works the supply chain ecosystem is a complex one especially for multinational companies that work with suppliers all over the world. The cashtocash cycle is one of the most popular supply chain financial metrics for its ability to provide a holistic picture of the enterprise and cash flow into, within, and out of the company. Volatility has increased and the world is more global. To subscribe to our blog, enter your email address below and stay on top of things. The book links corporate financials to supply chain maturity. It contains the best and most widelyused procurement benchmarks based on the current state of the market. Chief customer officer ceo coo cfo manufacturing customer service vp of supply. Please use the link provided below to generate a unique link valid for 24hrs.
Supply chain metrics that matter strategic management. Ardent partners procurement metrics that matter in 2019 ebook is the product of a decades worth of market research. Cecere, 9781118858110, available at book depository with free delivery worldwide. Tracking these core metrics allows management to identify problem areas and fix them with data and experience. In a market where growth is stalled and many companies are stuck in driving supply chain performance, this book provides a clear, concise framework for a more modern, effective supply chain. The goal is to help supply chain leaders understand what is possible in driving supply chain excellence programs. This concept has been attributed to such varied sources as management guru peter drucker, sir william thomson, also known as lord kelvin, and w. Well email you with a confirmation of your subscription. Within the world of supply chain management scm, each industry is unique. Supply chain measurements or metrics such as inventory turns, cycle time, dpmo and fill rate are used to track supply chain performance. 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. Although this framework is generally viewed from the top down, in many instances, a study of the six drivers may indicate the need to change the supply. Supply chain metrics that matter cecere, lora m download.
These reports are based on data collected from financial balance sheets and income statements over the period of 20002012. Supply chain metrics that matter is a series of industryspecific reports published throughout the year by supply chain insights llc. Number 4, volume x, december 2015 jancik, rathousky. A threepoint approach to measuring supply chain sustainability. Plank and others published supply chain metrics that matter, by lora m. Tracking your transportation metrics allows you to view your performance over time and guides you on how to optimize your logistics and supply chain operations. Cecere is a supply chain researcher as well as an authority in supply chain technology. They will give you the most important supply chain performance headlines at a glance. Companies spend a great deal of time tweaking their supply chains to improve efficiency and visibility while attempting to minimize cost and risk. R ecently, institute for supply man age ment ism surveyed supply chain leaders about departmental performance metrics. Cecere is the founder of the research firm supply chain insights. Supply chain performance refers to the extended supply chains activities in meeting endcustomer. Dec 08, 2014 supply chain metrics that matter 2014, by lora cecere. Page 3 research the 2016 supply chains to admire report is based on the supply chain metrics that matter research published throughout the year by supply chain insights llc.
Metrics that matter metrics matter in business performance. Supply chain driver and metrics chopra free pdf file sharing. While cost savings are an obvious objective of procurement performance, it is not just restricted to that. Therefore, it is quite indispensable to evaluate the risk of the new energy vehicle supply chain. How to conquer the effective frontier and drive improved value. Sep 18, 2015 the supply chain index is a composite metric, measuring a companys improvement on balance, strength and resiliency factors within a peer group for a given time period across a portfolio of metrics. This research starts in the spring when we can access fullyear corporate reporting for the prior year.267 461 626 964 932 1497 242 890 751 93 1144 1175 1627 891 1605 967 1195 741 1369 781 1184 1178 1200 39 1549 1051 679 1570 72 686 208 173 1605 699 1091 983 1220 996 331 964 382 708 353 557 1048 476 765 1197