Study On Supply Chain Performance Measurement System Based On Customer Value

Chapter one IntroductionWith the increasing fierceness of global competition, constant improving of customer's demand and the shortening of products life cycle, the competition between the enterprises is developing into competition between the supply chains gradually. Supply chain management is a kind of management method which integrates the supplier, the manufacturer, the warehouse and the retailer into a whole system, to produce and deliver the goods with the least possible cost. Through the information-integrating, recourse-sharing and organization-coupling, SCM is able to meet the customers' demand at the least possible system cost and thus deliver more customer value. The success of SCM depends on delivering more customer value with less system costs.Effective performance measurement is an indispensable part of enterprise management procedure. By evaluating production and operating activities of the enterprise fixedly or irregularly, performance measurement can help to find out the weakness in the enterprise, put forward improvement ways, and finally help the enterprise to obtain quite great progress. Similarly analyzing and measuring the supply chain performance is also an important issue in order to improve the supply chain management.Chapter two Connotation and trait of supply chain performance measurement Under the environment of SCM, the management thoughts and emphases have changed greatly. Accordingly the method of performance measurement has also changed. The emphasis of traditional performance measurement is on the operation within the boundary of the enterprise. It cannot meet the requirement of supply chain performance management which stress the holistic performance and the cooperation of the member enterprises. Under the environment of SCM, the emphases should be on the whole supply chain system rather than on the operation of one member. Selecting financial indicator will make the member enterprise pay attention to its own profit and thus impair the holistic profit of the supply chain. Furthermore financial indicator reflects the by-past efficiency and effectiveness of the enterprise, and it could not give any impetus to future value. Based on previous studies this paper picks out seventeen indicators from the point of customer value to evaluate the supply chain performance. Indicators based on customer value are foreseeable, and they are extraversion, integrative, real-time, dynamic, organizable and clastic. Because there exists direct positive correlation between customer value and the profit of enterprise, the financial performance will improve greatly as soon as the indicators based on customer value become satisfying.Chapter three Supply chain performance measurement system based on customer valueThe key to supply chain performance evaluation is picking out the indicator and set up the evaluating system. when selecting the indicator there are some principle to follow: the indicator must be unambiguous and measurable; measurement system should serve the evaluating of the process and the result of the enterprise operation; the indicator should be consistent with firm's competitions strategy; the indicator should combine the short-term profit with the long-term advantage, especially stress the latter one; the indicator should shift with the changing of firm's competition strategy. According to the fore mentioned principles, the author establishes supply chain performance measurement system based on customer value. Customer value is the customers' subjective evaluation on the utility of the products (or the service) that enterprise offers. It equal to the benefits a customer gets from the products minus the expenditure one must pay in order to get the products. The author picks out seventeen indicators from four aspects: the utility delivered by the products; the quality of the servicing process; price of the products; and the cost of getting the products. Finally we can structure the supply chain performance measurement system. Indicators which can be ca...