Performance measures and metrics in a supply chain environment

In today's world, supply chain management (SCM) is a key strategic factor f or increasing organizational effectiveness and for better realization of or ganizational goals such as enhanced competitiveness, better customer care a nd increased profitability. The era of both globalization of markets and ou tsourcing has begun, and many companies select supply chain and logistics t o manage their operations. Most of these companies realize that, in order t o evolve an efficient and effective supply chain, SCM needs to be assessed for its performance. Based on a literature survey, an attempt has been made in this paper to develop a framework for measuring the strategic, tactical and operational level performance in a supply chain. In addition, a list o f key performance metrics is presented. The emphasis is on performance meas ures dealing with suppliers, delivery performance, customer-service, and in ventory and logistics costs in a SCM. In developing the metrics, an effort has been made to align and relate them to customer satisfaction.