10 Soft Metric Considerations in Measuring Supply Chain Performance

10 Soft Metric Considerations in Measuring Supply Chain Performance

Review on  article of Chuck Intrieri  on cerasis.com April 25, 2016

By: Dony Saputra

1. Collaboration and frequent communication between Supply Chain partners, including those considered at one time as a competitor.

With increasing VUCA environment, Data analytic and Cloud Application play a big role of collaboration and communication internally and externally. As Cloud apps will equipped the activities to all partner everywhere and anytime, while data analytic used as trend and automated intelligence of the competitor.

2. Customer Service Levels: the question will be how to measure Flexibility SLA as the environment move dynamically
3. Effective, successful Key Performance Indicators (KPIs)/A balanced scorecard:Dilemma will appears where as some organization thing KPI created to high and perceive as unreachable Target internally and externally
4. Using supply chain technology to aid in measurement & efficiency: advancement of Artificial intelligence and IOT might be applied to this part but how accurate will it be?
5. RFID, AIDC, and IOT Systems: application of this technological capability are undeniable to be use to easier performance of IT Capability in supply chain
6. Risk Management methods:  Supply chain entities need to understand how risk management and resiliency applies to both good and bad situations and how an organization can improve supply chain risk management and resiliency processes. Needed to reduce risk although it will take extra effort to supply chain activities
7. Cyber Security Systems: As the use of IOT, all application and machine will be connected it will need protection for any kind of cyber threat. The question will be how far can it protect the system as the hacktivist are increasing their capability and in number in breaching any cyber activity.
8. GPS:  As google API’s are release for this, its uninventable to use this technology. But with it release as a free plugins it’s vulnerable to any threat and challenge on unknown and unidentified places.
9. Supply Chain Visibility: Lora Cecere, of Supply Chain Insights writes, “Today 1/3 of fruits and vegetables and poultry products are thrown away due to spoilage. Companies struggle with counterfeit goods. In the future, I expect the automation of the chain of custody with better control of temperature and secure handling.” Government transparency on port, customs process and dwelling time still be a problem in emerging market
10. Staying abreast of the state-of-the art in Supply Chain Management: extended Lean initiatives in the Supply Chain, Robotics, and Voice of the Customer (VoC) to improve Supply Chain performance. How can it be measure is still in question.