Gartner Research

The Hierarchy of Supply Chain Metrics: Frequently Asked Questions

Published: 26 June 2015

ID: G00279472

Analyst(s): Debra Hofman

Summary

Supply chain executives have been using the Hierarchy of Supply Chain Metrics to focus on the metrics that matter, and to provide a structured approach to manage trade-offs across the end-to-end supply chain. Here, we answer some of the most frequently asked questions about the Hierarchy.

Table Of Contents

Analysis

  • Introduction
  • Why Is the Demand Forecast at the Top of the Hierarchy?
  • How Does the Hierarchy Compare to the SCOR Model? Is It an Alternative?
  • How Do We Color It in?
  • Don't We Need Different Metrics for Different Businesses, Regions or Product Lines?
  • Where Is Quality in the Hierarchy?
  • Where Is the Customer Reflected in the Hierarchy?
  • We're in an Industry in Which Regulatory/Compliance Is Very Important; Where Is That in Here?
  • What If We Outsource a Large Portion of Our Manufacturing or Logistics?
  • We're a Retailer; How Does This Apply to Us?
  • We're a Distributor, How Does This Apply to Us?
  • What's in the "Cost Detail" at the Bottom of the Hierarchy, and How Does It Differ From "SCM Cost" at the Top?
  • What's in "Perfect Order Detail" at the Bottom of the Hierarchy, and How Does It Differ From the "Perfect Order" at the Top?

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