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© Supply Chain Visions 2004 – All Rights Reserved

upply

hain     isions®

V

Metrics Drive Behaviors

Does Not Consider

Kinds of Behavior Created

Metric

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How much did it cost to fill the order?

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Customer complaints (quality or accuracy)

- Did it arrive when the customer wanted?

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How much did it cost to fill the order

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Cycle time up or down the supply chain (tail)

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Customer complaints (quality or accuracy)

-Cross functional view to work with OM and Manufacturing

- Large inventories on hand to prevent out of stocks

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Expedited orders to manufacturing

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Airfreight shipments

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Large inventories on hand to prevent out of stocks

97% On Time to Customer Request

99% Fill Rate for a Distribution Center

Better

Bad

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