Performance Management

A performance management approach involves implementing a process, a method, a metric, and a technology that will create a consistent relationship between supply chain strategy, planning, implementation, and controlling. In the SCM cycle, performance management represents the final element. However, the monitoring processes often take place concurrently with all the other elements. It involves a retrospective analysis to determine whether the correct process was followed and whether the desired results were achieved. The SCM Performance Management System should be developed and implemented according to departmental policies and procedures and applicable legislative requirements. Member companies of a supply chain must be able to evaluate the overall performance of the supply chain against the needs of the end customer. Further, member companies within the supply chain must be able to assess their relative contributions. To accomplish this goal, there is a need for a performance measurement system that is not only capable of operating at several levels but also capable of linking or integrating the efforts of these levels . Measurement methods and tools will need to be developed for measuring, monitoring, and managing supply chain processes in order to meet this requirement.

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