ABSTRACT

This chapter describes how supply chain managers in a company can connect performance measures to their organization's retail format and its strategies for competing. The strategy should link with the highest level in the hierarchy just described, and then deploy downward to the diagnostic and ground levels and should always reinforce the designated retail format or a service provider's supply chain role. The chapter describes a framework for matching top-tier supply chain assessment level measures with company strategies for competing. Metrics are important because they define performance expectations and supply chain performance in terms of strategy fulfillment. A framework, utilizing a concept called the "driving force", will help explain alignment of metrics and strategy. The chapter explains common business level and supply chain metrics or metric families. Supply chain practitioners will recognize these metrics that are divided into service, operational, and financial categories.