Window-dressing and Supply Chain Score-carding
When we review Supply Chain Dashboards, there are a variety of colorful metrics. Are they the right metrics – Are they calculated right to show true performance?
Every Senior manager should look at four key metrics:
a. Demand Fulfilment
b. Inventory Level
c. Demand Visibility
d. Supply Adherence
The first measure is the traditional customer service measure or the order fill metric. But there is a lot of confusion in this metric – Should we measure the reality or should we measure to window dress our performance to the customer?
If you don’t measure right, you will be at a loss to know where you are. Although politically palatable, an inflated measure will hide problems and will show up in the financial results.
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