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Extended Enterprise, The: Gaining Competitive Advantage through Collaborative Supply Chains by Robert E. Spekman, Edward W. Davis

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Chapter 9. Metrics for Extended Enterprise Performance Measurement

As noted in Chapter 1, the overarching objectives of the extended enterprise are to maximize the value generated for the ultimate end customer and to minimize total costs along the entire value chain. In this context, metrics for performance are of key importance because they influence the ability to conceptualize the extended enterprise. More importantly, they affect managerial behaviors that impact the capabilities required to implement the tenets of the extended enterprise. To repeat an old adage, “What gets measured gets rewarded; what gets rewarded gets done.”

This chapter reviews briefly some of the traditional performance measures used in purchasing and supply chain management ...

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