Performance measures and metrics in a supply chain environment

In today's world, supply chain management (SCM) is a key strategic factor for increasing organizational effectiveness and for better realization of organizational goals such as enhanced competitiveness, better customer care and increased profitability. The era of both globalization of markets and outsourcing has begun, and many companies select supply chain and logistics to manage their operations. Most of these companies realize that, in order to evolve an efficient and effective supply chain, SCM needs to be assessed for its performance. Based on a literature survey, an attempt has been made in this paper to develop a framework for measuring the strategic, tactical and operational level performance in a supply chain. In addition, a list of key performance metrics is presented. The emphasis is on performance measures dealing with suppliers, delivery performance, customer-service, and inventory and logistics costs in a SCM. In developing the metrics, an effort has been made to align and relate them to customer satisfaction.