Key Supply Chain Performance Indicator Paper

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Date Submitted: 12/03/2010 07:36 PM

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Key Supply Chain Performance Indicator Paper

Here are just some of the supply chain performance indicators that are considered into the performance levels of the Supply Chain management.

Customer service levels

When the supply department is evaluating, it is very important to take into consideration the level of the customer service. In the supply department their function is to support the sales, maintenance, production capabilities. When the evaluation of the service is taken in to account its capacity needs to meet the fill rate needs of the assessing department of supply’s and the response time to the purchasing requisitions by evaluating the purchasing requisitions if it is necessary to help render a product or the service that is available in the required delays. When the performance indicators are set up for the lead time there should be a consideration given to timely as well a late and premature delivery as well as the product surplus deliveries.

On-time Delivery

With On-time Delivery it is one of the most important performance indicators. The measurement of the delivery for order issued. The two types of measurement are to perform from delivery, delivery against the request date, and delivery against a promise date. The on-time delivery metric will help buyers to know which suppliers can perform well as suppliers who perform poorly. The metric is linked to a supplier score card. And the score care is an overall performance of the supplier which is based on the weight average of the not just on-time delivery, and also the quality, customer service, and cost.

When they want to measure the on-time delivery, request date, promise date, and the delivery date are needed. It will illustrate, and request dates that are normally recorded on the purchase requisition and then it goes on a purchase order to send to the order to the supplier. When the supplier has received the purchase order, it will send the order to acknowledge to...