Category Archives: Performance

Leading or Lagging?

Are your company’s supply chains leading or lagging?

Don’t have the cost or asset efficiency answers to this question? Then you are probably not truly in control of your company’s supply chain performance. At the highest level managing supply chains starts with understanding how well you perform and developing strategic initiatives to improve or maintain supply chain performance.

Many executives ask us how to start the process of making strategic investments in supply chain. One answer is to show how you perform in comparison to your competitors and peers, and your trends versus industry trends. Benchmarking your financials is not difficult and PCG Benchmarks can provide you you with the first insights. Continue reading

Financial vs Operational Metrics

There are hundreds of supply chain metrics, many of them ‘standard’ to a degree – order cycle time is a pretty standard metric, though you can tweak the “when” for when the order arrives as well as when the delivery is handed the customer, but most serious supply chain professionals agree on major definitions.

Some organizations use far too many metrics – I recall a Supply Chain re-engineering and ERP implementation I was involved with, which had with 20 operational reports, only two of which were used. The cost to develop was amazing. The flip side is organizations that attempt to guide operations exclusively with financial metrics. An example may be to look exclusively at either total supply chain cost, or perhaps inventory. If you are organized to look at supply chain by P&L only, or worse, by general ledger line, it makes perfect sense to simply set up a metric, and report and try to manage and optimize the supply chain by that financial view.  Continue reading