A performance measurement system offers to integrate strategic planning and operational control of an organization and provides the needed data to the monitor, control, evaluation, and feedback functions on operations management.
Since it may help businesses achieve a number of objectives, supply chain management is essential. Controlling production processes, for example, can improve product quality while reducing the possibility of recalls and legal action and helping to build a strong customer brand.
Business process optimization is the aim of supply chain performance management, which is accomplished through the tracking and evaluation of key performance indicators. Businesses may add value to the vast amounts of data that are generated over time by measuring and monitoring metrics against set targets.
The five essential interconnected operations of plan, source, make, deliver, and return make up a supply chain, according to the SCOR model. To assess the effectiveness of a process, one often considers its reliability, responsiveness, flexibility, cost, and asset.
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