Designing Supply Chain Organizations for Peak Performance
This chapter explores the roles of performance measurement, including how it helps in shaping internal subcultures. It presents an overview of some of the basic uses of performance measures which, when considered holistically, are what in fact make the cultural influence possible. The chapter considers the four generic supply chains identified by John Gattorna continuous replenishment, lean, agile and fully flexible. In the fully flexible 'emergency event' supply chain, strategies and measures will focus on saving lives and on safeguarding against further threats. The chapter further examines how customer view the performance of suppliers, and ideally pre-empt any performance glitches before they become 'serious' issues, suppliers must measure themselves in the same way or at least incorporate these measures as part of their own performance measurement system. In order for performance measurement to be fully utilized, it must first break away from the perception of being merely a cost management tool.