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Performance Measurement and Evaluation

  • Syed Abdul Rehman Khan
  • Zhang Yu
Chapter
Part of the EAI/Springer Innovations in Communication and Computing book series (EAISICC)

Abstract

A system of measurement and evaluation of purchasing and SC (Supply Chain) should support corporate objectives. A system of measurement that directs behaviour and activity away from those objectives is counterproductive and may cause more harm than good.

There is a need to generate systems of measurement that are quick to respond to change. Companies will also gradually require measures that focus on end outcomes rather than on particular operation. Additionally, top executive must have the ability to differentiate between poor and good practices/outcomes of purchasing. A well-developed performance system of measurement can help provide this difference. Undeniably, the balanced scorecard is a very advantageous method of purchasing and supply measurement.

Keywords

Operational Benchmarking Efficiency Measurement and evaluation Purchasing and supply Key performance indicators—KPI Training and education Purchase order—PO Purchasing Advance shipping notices (ASNs) Electronic data interchange—EDI Transportation cost minimization Manufacturing outputs Logistics and distribution New product development Time-to-market targets Cost avoidance Support-activity Strategic benchmarking Supplier Balanced scorecard Integration System performance Supply base management Procurement Direct material—DM Customer orders Safety and physical environment Standardization Technology Cycle time manufacturing Responsiveness Parts per million Price performance 

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Syed Abdul Rehman Khan
    • 1
  • Zhang Yu
    • 2
  1. 1.School of Economics and ManagementTsinghua UniversityBeijingChina
  2. 2.School of Economics and ManagementChang’an UniversityXi’anChina

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