Companies are still trying to figure out which are the metrics that matter, how to get everyone to agree on standard definitions, and how to turn the numbers into something actionable.
This year, we saw more emphasis on financial supply chain metrics, such as working capital and cash-to-cash. We also saw an increased focus on the demand forecast metric as companies look to better sense the anticipated upswing. Only a handful of companies are successfully tracking the full perfect order and total end-to-end supply chain cost, and where they are, it tends to be in pockets of excellence rather than company-wide. Finally, there's been an uptick in interest from life sciences companies on the topic of metrics, as pressures on margin and cost in that value chain heat up.
AMR Research's annual Supply Chain Top 25 ranking highlights supply chain leadership. In the area of metrics, the best companies:
We expect this year to be one of continuing evolution. The majority of companies are still in the early stages of maturity when it comes to metrics, as they strive to get a better handle on their global supply chain performance. The next stage is to elevate the metrics from supply chain to value chain, where companies will apply the metrics that matter to guide collaborative, win-win activities with their trading partners.
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