ABSTRACT

The supply chain manager's growing understanding of the financial supply chain has led banks into placing more emphasis on supply chain management, having previously seen it as a peripheral issue. Knowledge and visibility of supply chain transactions are now inherent parts of their strategy to capture more market share and ensure customer retention, which makes bridging the gap between the physical and the financial even more urgent. There is certainly still a disconnect between the way in which supply chain managers and finance departments measure the performance of their operations. It might be thought that this is due to a lack of appropriate measurement systems, but supply chain managers in fact have a wealth of metrics and key performance indicators at their disposal. A study from the Politecnico di Milano listed over 20 different systems for performance measurement, each of which has its own hierarchies of metrics, submetrics, matrices, frameworks and tables.