Financial performance of the Supply Chain - Case study

There are many ways of measuring performance within the supply chain, but few that focus on the performance of the entire supply chain [AG 5 010] .

The difficulty of grasping the concept of the extended supply chain, and above all of managing it, often leads companies to focus on their own performance, losing sight of the fact that their performance is linked to that of the other links in the chain. Another difficulty is the reluctance of players in a global supply chain to share information.

Measurements therefore often stop at customers and tier 1 suppliers, but do not report on the performance of the overall supply chain.

How should the financial performance of a supply chain be measured? Should value creation for the shareholders of the firms involved in the supply chain be assessed separately or collectively? Should we take into account only the capital invested by the company in question, or also that invested by its partners?

At [AG 5 171] , we present a model for measuring the financial performance of a global supply chain. It is based on the measurement of 6 performance criteria for the entire supply chain. This article is a practical application of the theoretical model to the Reactivas automotive group.

After identifying a set of logistics chains, the various performance indicators for each chain will be measured, compared and analyzed to obtain a benchmark for each indicator. A summary of all the measurements will make it possible to identify the best-performing chains, i.e. the levers for improvement for the entire Reactivas Group.