Supply Chain Essay

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Supply Chain Management Coursework Report By XYZ ID: Title: Supply Chain Management Contents Types of Logistic Performance Indicators 3 Cost Indicators 3 Quality Indicators 3 Importance of Developing Logistic Performance Indicators 4 References 8 Types of Logistic Performance Indicators Organisation for Economic Co-Operation and Development (2002, pp 34) has distributed the logistics performance indicators into two types. First type is cost indicators and second type is quality indicators. Cost Indicators These include the following costs • Costs incurred in transportation • Cost incurred on inventory • Cost incurred on sorting and packing • Costs incurred on packaging Quality Indicators These include the following • Goods & customer services knowledge • Availability of any goods • Order to delivery lead time and its accuracy • Response time for special orders • Ability in organising information • Ability to organise time • Ability to organise accuracy • Response time in the event of a mistake. Importance of Developing Logistic Performance Indicators The basic purpose of developing logistic performance indicators is to enable a company to evaluate the efficiency and sustainability of its logistics systems. In addition to this, a company can enable itself to monitor how successful it has been in achieving its logistics policies. Furthermore, such indicators help a company to explore any possible improvements. There are different players in a logistic chain and each of them has to play a different role. Every player sets his objectives and the best way to be successful in achieving these objectives is to evaluate every objective. It is usually noticed that in private sector, the management aims to optimise the supply chain to stay competitive in global markets. In public sector firms, the basic

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