Supplier performance matrix

Watch the video and then summarise what you have learned.

Each supply chain performance metric gives a slightly different view of a piece of the supply chain. The important decision for any company is to prioritise which supply chain metrics are important and how they will be used. Many companies will use supply chain performance metrics that are easy to calculate, but may not necessarily give a true indication of how the supply chain is performing.

Characteristics of a good performance metric– when companies look at the various performance metrics that are available, there are a number of characteristics that they should look for when selecting metrics that will help with their business decisions. Easy to understand– a good metric is one that can easily be understood by anyone that looks at it.