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Supply Chain Planning by Matthew J. Liberatore

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Chapter 5

Frameworks for Supply Chain Performance Management

Introduction

The supply chain organizations of most moderate to large-sized firms are increasingly employing an array of dashboards, scorecards, key performance indicators (KPIs), and/or other measurement indices to monitor their performance. The development and availability of insightful metrics is a prerequisite for an effective performance management system. However, how a firm organizes its KPIs and how these KPIs align with its supply chain management decision framework and strategy represents an equally important issue. Thus, firms must not only have strong KPIs, but these KPIs must align seamlessly with the firm’s supply chain management framework, activities, and strategy.

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