Measuring Effectiveness
While efficiency is critical to profitability, it is of little value unless it is accompanied by another quality: effectiveness. Unlike efficiency, which is concerned with the economical use of resources, effectiveness reflects how well a process achieves its business objectives. The two qualities are often confused, but the distinction is simple: Efficiency measures how well you use what you have, and effectiveness measures how well you get what you want.
Effectiveness is a concern for all the processes involved in replenishment, production, and fulfillment, but the fulfillment end of the business usually receives the most attention because it's the most visible to customers. To put the matter bluntly, it doesn't matter ...
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