externally with key suppliers, using a metric scorecard is
Case Study #2:
A client in the medical technologies and services industry
we have worked with used metrics to analyze the cost of one
component in a piece of medical equipment. It determined
the key supplier was charging a higher price than the competition for that particular part. During contract negotiations,
the supplier refused to collaborate with the company to find a
way to reduce the cost.
As a result of the supplier’s intractability the medical technologies company created new specifications, writing that
supplier out of the competition. Losing that part of the business was a rude awakening for the supplier to the benefits of
collaboration and cooperation.
Case Study #3:
Another client that manufactures processed foods uses an
internal scorecard to align its team’s efforts as they manage a
supply chain that serves the 10 customers that generate more
than 80 percent of the client’s revenue. The customer-centric
scorecard is shared among a cross-functional team so everyone knows exactly the goals and objectives. This scorecard
had shared elements between customer service, operations,
logistics, back office functions and sales.
Metrics Elevate the Supply Management
As the supply management industry continues to educate and
inform executive management about the value it brings to the
corporate bottom line, the strategic use of metrics reinforces
Through performance measures like order-fill rates, on-time
delivery and services levels, you can demonstrate how well
you are providing for your customers. Other measures will
demonstrate how well you’re managing your business, such
as material cost and manufacturing cost.
At the highest level, your performance measures developed
through your metrics plan will show how supply management functions are increasing shareholder value by making
the business more competitive and more profitable. Better
measure your successes, and use the results to have a more
important say in your organization.