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Surviving Supply Chain Integration: Strategies for Small Manufacturers
Detail metrics should be selected for monitoring key functions, processes, and capabilities throughout the chain. Each participant's detail metrics should roll up to an overall measure of supply chain performance. The roll-up should be designed to show how each participant in the supply chain contributes to overall performance. Otherwise, individual firms may take unilateral action to improve their financial or competitive position, which may compromise the performance of the supply chain as a whole. Although detail metrics differ from industry to industry, the ones listed below, which are often used by large corporations to monitor their internal operations, should be considered.
time to market (the speed at which the organization identifies and delivers new products to the marketplace)
inventory levels and capacity utilization
market to collection (the speed with which receivables are converted to cash)
customer services (measures of after-market support to customers)
management for results (the efficiency and effectiveness of management)
infrastructure (the up-time and efficacy of information systems, training, and other support processes)
return to available (measures of velocity, asset utilization, costs and revenue generated from reworking the product in the returns channel)
delivery-to-commitment date (measures of meeting commitments)