Question

Compare traditional performance measures with current performance measures in the supply chain? Why has the changes in these metrics occurred? minimal 170 words

Answer 1

Traditional performance measures were reactive in nature and used to work in isolation at every single functional or operation level in supply chain. The performance measures were provide based on the error that used to be recorded in supply chain and then strategy formulation used to take place based on any assessment of the error or lack in supply chain. This used to be the trend as competition was not like this today.

Performance measurement is the monitoring and measurement of the overall supply chain and providing the collective assessment of the situation and directions to mitigate the same. However, performance measurement were not taken that seriously and used to be performed only when there used to be certain deficiency in supply chain used to be found.

The way business is being conducted in recent world has changed drastically. Businesses are tried to cut cost and be competitive in every aspect of their functioning. Improving upon supply chain management is the key for many organizations that wants to maximise it its profit and cut cost by waste elimination. The need is that the performance management shall be predictive and not reactive.

Performance measurement shall be in such way that before any lapse or deficiency in supply chain occurs, there has to be predictions, measurements and monitoring, assessment of any foreseeable lapses or error and proper planning and directions shall be well prepared in advance to mitigate with any future issue that come in supply chain. Based on these predictive measurements, one can improve upon supply chain and become competitive in terms of having the right supply chain.