12 Jul 2014

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.

Please visit http://demandplanning.net/consulting.htm to know about our services offerings at DPLLC. 

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