HOW TO MEASURE SUPPLY CHAIN PERFORMANCE

10 | R i g h t S c o r e s ™ dangerous. There are five main activities in a supply chain – customer service, inventory management, sourcing, transportation, and warehousing. If a system of supply chain metrics excludes one of those activities then the system of metrics is incomplete and potentially dangerous. I could continue but I think you get the message. Incomplete systems of metrics always lead to sub-optimization and dis-integration. Targets Though there are many characteristics of effective targets, the most important that I have experienced in our consulting and research answer the following. • Are the targets reasonably achievable ? • Are the targets motivational ? Achievable If someone invited me to play golf and told me my target score was 72 I would assume they are talking about nine holes. If they were serious, I would be so discouraged I wouldn’t play. Many corporate cultures are demotivating performance and discouraging people by handing out ridiculous and unreasonable performance expectations in short time in the name of breakthroughs or on the heels of some new diet fad book. High performance goals are fine as long as they come with reasonable time and plans and resources.