Performance Measurement Along Supply Chains (Chapter 14)

Flashcards covering key vocabulary and concepts from Chapter 14 on performance measurement along supply chains, including SCOR, Balanced Scorecard, sustainability, and world-class measurement practices.

Performance measurement

The process of quantifying the efficiency and effectiveness of various activities across the supply chain.

Financial performance measures

Metrics based on costs, revenues, and profits reported in financial statements; may not fully reveal process performance.

Nonfinancial performance measures

Metrics that capture aspects like quality, lead times, sustainability, and customer satisfaction not shown in financials.

End customers

The ultimate buyers whose needs segments the supply chain must satisfy (variety, quantity, delivery frequency, quality, sustainability, pricing).

End-customer needs factors

Key considerations when serving customers: product variety, quantity, delivery frequency, quality, sustainability, and pricing.

Trade-offs (cost, quality, sustainability, service)

Considerations in performance decisions where improving one area may worsen another (cost vs. quality vs. sustainability vs. service).

Digital footprint

The expansion and use of digital technologies across the supply chain to enable better experiences and operations.

Multi-tier supply chain

Having several layers of suppliers and customers, which complicates performance measurement and management.

Visibility

The extent to which performance data are accessible and shared with all supply chain members.

Cooperation and shared planning

Collaborative efforts among firms to plan and execute to achieve common supply chain benefits.

Competitive force view of supply chains

Viewing supply chains as a competitive advantage that can be leveraged through superior performance.

Sustainability factors

Considerations like carbon emissions integrated into traditional cost/service trade-offs.

Green supply chain management (GSCM)

Incorporating environmental thinking into SCM and sharing responsibility across the chain.

End-to-end performance measurement

Assessing performance across the entire supply chain to align with strategy and end-customer satisfaction.

World-Class Performance Measurement Systems

A framework to develop and implement top-tier, strategic performance measurement across functions.

SCOR model

A framework to integrate SC operations and measure performance via Plan, Source, Make, Deliver, Return, Enable.

SCOR process categories

Plan, Source, Make, Deliver, Return, Enable—the six core SCOR processes.

SCOR performance categories

Reliability, Responsiveness, Agility, Cost, Asset Management—the main categories for SCOR evaluation.

SCOR performance attributes

Specific metrics under categories, such as on-time delivery, lead times, and order accuracy.

SCORmark

A benchmarking tool that lets firms compare performance against peer companies using SCOR.

Balanced Scorecard (BSC)

A performance measurement framework with four perspectives: Financial, Internal processes, Customer, Learning and growth.

Four Balanced Scorecard perspectives

Financial, Internal business processes, Customer, Learning and growth.

Web-based scorecards

Online performance dashboards that link scorecards to enterprise systems and show real-time progress.

Total SCM costs

Costs to process orders, manage inventories, and run information systems across the supply chain.

Cash-to-cash cycle time

Average days between paying suppliers and collecting payment from customers.

Production flexibility

Time required to increase production by a specified unplanned amount (e.g., 20%).

Delivery performance

Average percentage of orders delivered on or before the requested date.

Perfect order fulfillment

Average percentage of orders that arrive on time, complete, and undamaged.

SC e-business performance

Share of electronic orders across SC members.

ISO 14000

Environmental management standards and certifications for organizations.

Triple bottom line (TBL)

A framework measuring social, environmental, and financial performance (people, planet, profits).

Carbon footprint

Total greenhouse gas emissions of a supply chain; analyzed to reduce emissions.

Environmental sustainability in SCM

Assessing and improving environmental performance as part of SCM.

Total and strategic purpose of performance measures

Linking measures to strategy, driving value, and guiding improvement across the supply chain.