Gartner Research

Use the Hierarchy of Supply Management Metrics for Strategic Alignment and Enhanced Performance

Published: 21 August 2013

ID: G00252798

Analyst(s): Ray Barger Jr, Richard Adams


The Hierarchy of Supply Management Metrics aligns supply management with other supply chain functions. CPOs can use these metrics to increase sourcing and procurement efficiency, responsiveness, and agility, as well as to understand the interdependencies between perfect order performance and cost.

Table Of Contents


  • Introduction
  • Introducing the Hierarchy of Supply Management Metrics
    • Supply Management Value
    • Demand Volatility
    • Supply Management Perfect Order
    • Supply Management Cost
    • Working Capital Management
    • Supply Management Excellence
  • How to Use the Hierarchy of Supply Management Metrics
    • Identify Metric Interdependencies to Make Profitable Trade-Offs in Supply Management
    • Use Common Supply Management Metrics for Different Types of Supply Chains
  • Frequently Asked Questions
    • Why Is Volatility at the Top of the Hierarchy?
    • How Is Sustainability Represented?
    • Where Is Quality Management?
    • How Do Our Suppliers and Outsourced Partners Track Their Performances?
    • How Is Supplier Innovation Measured?
    • Where Is Complexity Reflected in the Hierarchy?
    • What About People and Technology?
  • Tying It Together
  • Extended Analysis
    • Supply Management Metrics: Definitions
    • Supply Management Metrics: Scenarios and Impacts to Metrics

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