HOW TO MEASURE SUPPLY CHAIN PERFORMANCE

20 | R i g h t S c o r e s ™ Perfect Order Percentage According to the American Heritage Dictionary, “accurate” means “deviating only slightly or within acceptable limits from a standard”. Supply chain logistics encompasses customer service, inventory planning, manufacturing and procurement, transportation, and warehousing. Defining the right measurement focus, defining the right standard, and defining the acceptable limits of deviation from the standard for an integrated set of activities as broad as supply chain logistics is complex work. Let’s consider each aspect in turn. First, the right measurement focus. The link and common deliverable of customer service, inventory planning, manufacturing and procurement, transportation, and warehousing is an order. Supply chains exist to fill orders. Second, the standard. The standard has to be perfection, otherwise the pursuit of the standard will not yield the order of magnitude improvements needed in all areas of the supply chain. The focus - an order - the standard - perfection. Alas, the perfect order. The perfect order is logistically perfect meaning it is: • perfectly entered (the entry is exactly what the customer wants) by the means (web, tablet, telephone, direct entry) the customer desired in a single entry,