Performance Measures for Supply Chain Management (back to catalog)

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...The table below shows some traditional metrics, or performance measures, for three functional areas of a typical organization:

Table 1. Traditional Functional Performance Measures
Manufacturing Sales & Marketing Engineering / R&D
Unit cost

Labor cost

Labor productivity

Quality, scrap rate

Plant utilization

Plan vs. actual production
Market share


Sales growth

New "hot" products

Customer satisfaction

Labor & material cost


Award-winning designs

Design for manufacturability, assembly, etc.

Looking at the examples in Table 1, approximately what percent of these traditional functional metrics are common across more than one functional area?

Instructions Choose one Answer
Choose your answer from the next column;
Answer column will show correct/incorrect
Less than 25%
Between 25% and 50%
More than 50%

You wouldn't give your sales team tool belts and send them down to the assembly line any more than you would ask your engineers to do market research. While there are obvious benefits to the traditional functional organization (e.g., the ability to focus attention on particular skills needed for various parts of the business), it turns out that the standard performance measures for those functional areas can often hinder supply chain improvements. In this module we'll show examples of how that can happen and describe ways to reduce or avoid the problem...


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SCM105 Specifications

Title: Performance Measures for Supply Chain Management

4.3 / 5  (1199 ratings)

Total Reading Time: Approx. 1 - 2 hours (for average readers)

Word Count: Approx. 11,000 words


Certificate: Counts toward Fundamentals of Supply Chain Management

Datasheet:  Download


  1. Introduction
  2. Alignment of Metrics with Business Strategy
  3. Service Metrics - Build-to-Stock
  4. Service Metrics - Build-to-Stock (continued)
  5. Service Metrics - Build-to-Order
  6. Inventory Metrics
  7. Speed Metrics
  8. Financial Metrics
  9. Bullwhip Metric
  10. "Bad" Metrics
  11. Applying Metrics Across the Entire Supply Chain
  12. Conclusions
  13. Test Your Knowledge
  14. Feedback
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