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Performance Measurement is a means of assessing progress against stated goals and objectives in an unbiased and quantifiable way. All measurements should aim at objectivity, fairness, consistency and responsiveness. The indicators also serve as indicators for a company to assess its overall performance over time. So the exercise of performance measurement can produce both quick and long-term effect. Good measurement should be result-oriented and trigger one to link up its operational processes to the company's goals.
It bears a number of advantages:
- Help identify areas of weakness which are potential areas for improvement;
- Help set company's priorities and justify resources allocation for improvement;
- Promote understanding of operation across departments;
- Promote communication with common language. Same results delivered under same definitions enable staff, stakeholder, and supply chain partner share common understanding on the progress and alert them on potential areas for improvement. It helps give more support on pushing strategies and deriving decisions; and
- Promote accountability and ownership on the processes whose performance need to be managed by the staff-in-charge.
To measure performance of a supply chain, the following tools are available:
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