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Explain why supply chain performance measurement is necessary and important. Because supply chains are often very complex, with each firm in the chain seeking to fulfill its own goals, it is sometimes difficult to determine whether the supply chain as a whole is functioning well. Firms in the best supply chains develop and use common metrics to assess whether customers are satisfied and whether operations are completed in a timely fashion, at an acceptable level of cost, and with good asset utilization.
Often, this includes the use of the Balanced Scorecard methodology, which ensures that not only will customers be satisfied, but also that the firm will execute its tasks with process efficiency, with financially acceptable returns, and in a way that allows for learning and growth for the company.
1. Why is supply chain performance measurement necessary and important?
2. How does the Balanced Scorecard Approach help firms within the supply chain to establish and meet common goals?
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