Supply Chain performance measurement and benchmarking are critical tools for companies and supply chain networks to stay competitive in today' s business world. They are no longer just recommended, but required for companies'success. Any organization without proper visibility of its supply chain performance and knowledge of where they stand against their competitors will soon face the risk of being eliminated from the market, due to volatile and highly-demanding customer requirements and low margin threat.
Performance measurement and benchmarking enables organizations to define and use specific indicators to assess their supply chain operations and continually measure how well services, processes or programs are managing to fulfill customer needs and achieve desired financial results.
World-class organizations use the information to set their strategic plan with clear objectives, make better decisions and find out the means to accomplish the goals. It will allow you to improve where necessary and bring you and your company to a higher level. It has also been used by leading companies to improve the collaboration level among the partners of a supply chain to achieve a win-win solution.
However, measuring and benchmarking performance could be costly and time consuming if it is not well planned and executed. Ineffective measurement will never reveal what really needs adjustment in your organization. It is critical to design and implement a properly focused, balanced and systematic approach. Appropriate gap analysis and improvement actions need to be done, because the ultimate aim of implementing a performance measurement system is to improve the performance of your organization.