| Supply chain is where sets of resources and | | | | Supply chain performance measurement is usually |
| procedures are linked. Usually, this begins with the | | | | done by a company on a regular basis. This will give |
| supply of the raw materials that are going to be | | | | him an idea regarding what he should do so that he |
| used and then it extends to the delivery of the | | | | can improve the health of this section and the whole |
| products to the customers. This is an important thing | | | | company as well. This however requires |
| that has it be considered in the company because of | | | | multidimensional strategies that will address how the |
| the fact that this is also connected to other | | | | firm will present service to its customers. Usually, the |
| departments including the customer care and the | | | | supply chain measures are similar with the other |
| communication center. With its great importance, a | | | | measures in the company. Yet, one can observe that |
| lot of companies are now making sure that their | | | | there are specific goals here that make each of the |
| supply chain management is well taken care of. This | | | | supply chain metrics different from the others. |
| will enable them to meet the demands of their | | | | Quantitative supply chain measures are broken down |
| customers easily. This is why they have created | | | | into to classifications: the financial and non financial. In |
| supply chain measures to guide them with the | | | | the latter, this includes the cycle time, the inventory |
| system that covers the entire material flow as well | | | | levels, the customer service level and the resource |
| as the business information all the way to the final | | | | utilization. These are all important in such a way that |
| customer. | | | | this will help the company see the improvements as |
| So what are supply chain measures? There are | | | | well as the malfunctions in the delivery processes |
| actually two categories in which these principles will | | | | especially in the lead or cycle time. The order to |
| be classified. They are the qualitative and the | | | | delivery time allows the owners to determine exactly |
| quantitative measures. In the former, this is where | | | | how well the organization responds to the call of their |
| the satisfaction of the customers is measured as well | | | | customers and the results will be visible through the |
| as the quality of the product being delivered. On the | | | | reports. |
| other hand, the quantitative measures are those that | | | | Meanwhile, financial measures are those that consist |
| are calculated such as the time between the order | | | | of the cost of the materials, the revenue received |
| and the delivery processes, the response of the | | | | from the products sold, the costs of every delivery |
| supply chain in terms of the time involved, the | | | | and transportation, the fees for the expired |
| utilization of the resources and the performance of | | | | perishable supplies, penalties for late or incorrect |
| the delivery. Many studies have shown that the | | | | deliveries, credits from the suppliers for their errors |
| quantitative performance is really effective and | | | | as well as the behind schedule release and the costs |
| therefore this should be given the attention they all | | | | of the goods that are returned by the customers. |
| need. | | | | |