You are a bad person if you don’t know that.
Well, I know that. I’m a bad person. I know my own supply chain because I’m bad. I don’t know what’s going on in other countries, but I know of at least three other people who know that and I’m going to find and kill them.
A lot of people think that supply chain performance measures are just things people give other people to keep them in line. Not true.
It’s pretty clear that a person’s supply chain performance isn’t what matters.
So many supply chain metrics are based on the wrong things, like number of people on the supply chain and the percentage of it that is in control of the owner. Instead, they should measure the quality of the relationship between the supplier and the customer.
This isn’t the only issue in the game – so many people will have a negative response to these stats, so we’ll have to take it one step further.
The real issue is the metric you are using to evaluate a person’s supply chain performance, the one that shows the relationship between the supplier and the customer. The other aspect of supply chain performance that is affected by supply chain metrics is the customer and supplier relationship.
Let’s begin with the supplier. The supplier is the person who has a contract with the customer and provides the goods the customer requests. When you want a certain quantity of a good, you have to pay for it. When you want a certain quality of a good, you have to pay to get it. That’s the contract.
The customer relationship is the most important element to the supply chain performance. If you’re trying to get a good deal, you have to pay for it. If you want a better price, you can put up with that.
The important question is what the customer wants. If the customer doesn’t want to pay, then the supplier has to go to the next step, the next stage of the supply chain. That’s when the supply chain is said to have an “overwhelmingly poor performance rate.” Overwhelmingly poor performance rate means that the supplier is not meeting its customers needs, and even in the best case scenario, the supplier will have to pay for any failures.