Tips for Measuring Manufacturing Supply Chain Performance

Given the ascent of supply risk management as the topic du jour in many manufacturing board rooms -- let alone procurement and supply chain war rooms -- of late, the narrower concept of performance management is often getting brushed aside. This is wrong for a number of reasons, perhaps most important of which is that supplier performance related issues are often the most important tip off to potential financial or operational viability concerns. There's no shortage of literature and advice on managing supplier and supply chain performance -- Sherry Gordon wrote the book on the subject, but new articles seem to crop up all the time offering input and advice. One such recent piece comes courtesy of Industry Week and shares the suggestion to "establish an integrated set of metrics that monitor overall performance" versus getting "dragged down into the weeds where individual key performance indicators (KPIs) can mislead the observer and may even yield conflicting results". Having seen this happen at one manufacturer -- who was measuring PPM inconsistently between divisions even with the same suppliers -- I can vouch for this suggestion.

Jason Busch

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