tailieunhanh - Measuring Efficiency of a Supply Chain

What can’t be measured can’t be improved. Even though Supply Chain Management is the most talked about topic today, currently no tool is available to measure any manufacturing organizations’ supply chain efficiency. Unlike productivity and or quality measurement, where the parameter can be measured objectively and expressed in unit or ratio, supply chain measurement is currently more of a qualitative statement. Even though the word ‘performance’ or ‘efficiency’ is often used communicating the same meaning, measuring the performance or efficiency of an ‘enterprise’ or a ‘supply chain’ conveys different meaning altogether | We have first highlighted the measurement parameters in the following table from a clothing manufacturer’s perspective. While almost all manufacturing related measures are theoretically measurable by a manufacturer, only selected measures are possible in customer service, logistics and sales related parameters. It is of pertinent importance to understand the secrecy and confidentiality issues perceived by every typical manufacturer working as CMT supplier or fully-factored clothing supplier to any high street retailer in EU or US. An organization of $ 25 million turnover is typically self financed and the operational efficiency horizon for such manufacturer spans between order receipts till goods trucked out of factory. The objective was to develop easy and simple metrics to measure such organization’s supply chain efficiency. After a thorough investigation of all measures SCORE model was selected for final adaptation. Last, but not the least the measurement parameters are chosen based on the functional link between upstream and down stream players in the supply chain and not merely in house functions of an apparel manufacturer.

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