Performance Measurement ( Kpis ) - 1602 Words

Performance Measurement (KPIs) is a critical part of the global supply chain management. Advantages include expertise and specialization. Therefore, developing effective methods to layout the operations of better supplier performance measurement (KPIs) can significantly reduce supply costs, improve quality, and optimize service levels so that a business can run their logistics operations more efficiently. The disadvantage to this is the risk of streamlining the business when there is an unexpected problem such as, when a supplier has a technical problem and the buyer may have to negotiate on short notice with a replacement supplier. I. Introduction Overview Delivery performance, quality performance and cost†¦show more content†¦A contract manufacturing method is feasible to add capacity and flexibility without investing in new facilities. For instance, Mercedes appointed AM General, to produce 12,000 of their R-class vehicles destined for export to China. The purpose of this outsourcing is clear: â€Å"Mercedes will manage the logistics and supply chain, while keeping their supplier network in place. All parts of the R-class vehicles will be assembled and painted on AM General’s production line in Mishawaka, Indiana† (The missing link in automotive contract manufacturing, n.d.). Despite the strong ties that still exist between the auto company and its suppliers, recently, the relationship has been changing in response to the need for more globalized supply chains. For instance, Nissan has already taken many steps to remove itself from the traditional keiretsu style supply chain after aligning with its parent company, Renault in France. Honda has also been changing its supply chain and is working with suppliers including foreign suppliers outside of their keiretsu supply chain. So, what is key to maintaining quality performance of suppliers outside of their keiretsu in order to continue to be successful? These Japanese automobile companies use supplier evaluation scorecards to improve supply chain performance. The three supplier performance categories thatShow MoreRelatedPerformance Measurement in Logistics Operations1440 Words   |  6 Pagesthe expanding diapason of performances required by the current emulous environment, performance measurement and monitoring, as a subject, has been arousing growing interest in various scopes, especially in the field of logistics operations. Explicit performance measurements provide a common groundwork for decision-making in companies. For performance measurement in Logistics operations, Key Performance Indicators are applied. â€Å"Key Performance Indicators, also known as KPI or Key Success IndicatorsRead MoreBest Doc1460 Words   |  6 PagesScorecard as a performance measurement tool. One can choose how deep to cascade the implementation of the scorecard down to the operational departments. By doing this the organization is getting as many employees as possible involved in the process. At the same time Worldclass tie this process to the computation of the compensation scheme involving the payment of bonus. The staff can see that their yearly bonus is dependent on their input of the reporting of the targets set in the KPI. That explainsRead MoreBeyond the ‘Iron Triangle’: Stakeholder Perception of Key Performance Indikator (Kpis) in Large-Scale Public Sector Development Projects941 Words   |  4 Pagestriangle’: Stakeholder perception of key performance indikator (KPIs) in large-scale public sector development projects Objectives This research has objectives to investigate the perception of the key performance indicator (KPIs) in the context of large construction project in Thailand (Second Bangkok International Airport or Suvarna bhumi Airport). The research attempted to achieve the following objective: 1. 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That explainsRead MoreThe Performance Of The Pioneer Company Essay1622 Words   |  7 PagesThe criteria for measuring the performance of the pioneer company, how the Balanced Scorecard can serve the company by the following process A Balance scorecard is a systematic approach to performance measurement that reflects the strategy of an organization into clear objectives, measures and targets. The Balance Scorecard integrates an appropriate mix of performance measures in the short and long term financial and nonfinancial performance measures used throughout the organization, based on theRead MoreKey Performance Indicators (KPIs)1215 Words   |  5 Pages Key Performance Indicators (KPIs) Key Performance Indicators (KPIs) are quantitative and qualitative measures used to review an organization’s progress against its goals. These are broken down and set as targets for achievement by departments and individuals. The achievement of these targets is reviewed at regular intervals. 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However, while the aforementioned concerns should not be overlooked, what seems to be missed by many agencies deploying these devices is the benefit of BWCs as mechanisms for risk management and performance measurement tools. Risk management is the process used to identify and control exposure to potential risks and liabilities in both public and private organizations. A wide variety of corporate organizations adopt risk management practices to avoid increasing