Supply Chain Metrics
The course focuses on the relationships within supply chains (e.g. structure and organisation of supply chains), and how these relationships drive the performance of supply chains. Performance metrics (allocations of gains, decision rights and risk) that can be used to evaluate and improve supply chains will be discussed. In the strategic planning process performance targets are established. Subsequently, in the control and evaluation process these targets are compared to the performance metrics. Discrepancies may give rise to minor or major corrective actions (e.g., improving (contractual) relationships within the chain). Traditionally, performance metrics have been used in the strategic planning process to evaluate and control the performance of individual supply chain members. However, increasingly, it has been acknowledged that in supply chains performance metrics should be formulated on the level of the supply chain and not at the level of individual supply chain members. The following issues will be addressed:
- I.The structure and organisations of supply chains in terms of relationships between chain members;
- II.The relevance and importance of performance metrics for supply chain strategies and supply chain performance;
- III.The different categories of performance metrics available in Supply Chain Management;
- IV.The link between the structure and organisations of supply chains and performance metrics;
- V.Relation between supply chain performance and the performance of chain members: allocation of profits, decision rights and risk.
A number of reasons exist for the measurement of performance metrics in Supply Chain Management in relation to the structure and organisation of the supply chain. First and foremost, they provide an objective basis for decision-making and thus improve supply chain performance. Moreover, they facilitate communication, provide feedback to and motivate chain members. However, using the right performance metrics is essential. In Supply Chain Management performance measures range from price and cost measures (objective) to customer satisfaction measures (subjective). Establishing a supply chain performance measurement and evaluation system assists supply chain managers in determining the right performance metrics to be measured, to formulated the specific measures, to establish performance objectives and to implement the system in the supply chain.
Doelstellingen van dit vak
Participants in this course will learn the importance of managing (contractual) relationships in supply chains and how these relationships influence performance metrics which are used to evaluate supply chains. Understanding the role that relationships have in supply chains and the establishment of a supply chain performance measurement and evaluation system should result in the improved performance of the supply chain.
The course is part of the IB/SCM program. All courses in the program are obligatory to obtain the SCM certificate. In order to take part in the course intermediate knowledge of SCM is required.
An advanced level of English.
Articles and cases.