ABSTRACT
The aim of this chapter is to introduce a number of key measures which are both financial and non-financial to evaluate different aspects of supply chain cost, value and performance. There are a number of concepts that need to be understood relating to performance measures, measurement and purpose which are discussed. Some of those concepts discussed in detail are value, cost, profit, total acquisition cost, budgetary control, variances and standard cost, total cost of ownership, post ownership cost, activity based costing and direct product profitability. Different types of key performance indicators (KPI) are discussed along with benchmarking, value systems and value streams. Additionally, concepts such as best practice, world-class, benchmarking and balanced scorecards are introduced. New contexts always create new measures of performance recent examples include ESG, sustainable supply chains, Industry 4.0 and the circular economy.
