Apparel Industry Management

Apparel Industry Management 3(3+0)

Lesson 17 : Managing The Supply Chain

Measuring Supply Chain Performance

It is the first step towards improvement. There are four measures of supply chain performance cost, quality, flexibility and delivery.

1. Delivery – the percentage of on time delivery as requested by the customer are noted
2. Quality – a direct measure of quality is customer satisfaction. Another measure is related to customer loyalty. This is measured by the percentage of customers still purchasing the product.
3. Time – the total inventory levels. Time in inventory is level of inventory divided by usage time.
4. Cost – cost and be measured by including manufacturing, distributory inventory causing costs and accounts revisable carrying costs.

Cost can also be measured by measuring the efficiency in value added or productivity Efficiency (sales – cost of material) ( labour + overhead)