Supply chain performance benchmarking study reveals keys to supply chain performance

Gordon Steward

Logistics Information Management

1995, Vol 8, Issue 2, pp. 38-44

 

1)      Integrated supply chain

  1. a) Plan
  2. b) Source
  3. c) Make
  4. d) Deliver

2)      Four categories of operational change

  1. a) Policies, practices and procedures
  2. b) Organization
  3. c) Structure
  4. d) Systems
  5. i) Focus on information flow, key data and accessibility and many points in the supply chain

3)      Organizational model goals; Organizations must:

  1. a) Take ownership for the integrated supply chain as a process
  2. b) Demand results
  3. c) Ensure operational integration of all elements
  4. d) Continuously improve performance
  5. e) Support change management and steady state management

4)      Nine key metrics

  1. a) Published delivery lead times
  2. b) Time to achieve sustainable 20% production increase
  3. c) Total order fulfillment cycle-time
  4. d) Delivery to schedule date
  5. e) Supply chain response time
  6. f) Forecast accuracy
  7. g) Inventory
  8. h) Days sales outstanding
  9. i) Total supply chain costs
  10. j) Warrantee costs

5)      Each metric related to key supply chain management focus

  1. a) Delivery performance
  2. b) Flexibility and responsiveness
  3. c) Logistics cost
  4. d) Asset management

6)      Conclusions and key points

  1. a) Delivery performance
  2. i) Delivery performance is the driver of customer satisfaction
  3. ii) Delivery is the most controllable by supply chain management

iii)     There is a correlation between carrying more inventory and achieving higher delivery performance

  1. b) Flexibility and responsiveness
  2. i) Managing cycle times is crucial to delivery performance
  3. ii) Rapid supply chain cycle times and flexibility are strongly associated
  4. c) Logistics cost
  5. i) High costs are a symptom of an inefficient supply chain
  6. ii) There is little relationship between the level of integration and logistics costs
  7. d) Asset management
  8. i) Some companies fix problems by compensating with assets
  9. ii) The real opportunities for advantages lies in finished goods inventory where best in class is 1/9th of the median