Gartner Research

Use the Hierarchy of Supply Management Metrics for Strategic Alignment and Enhanced Performance — Part 1

Published: 30 November 2015

ID: G00292493

Analyst(s): Ray Barger Jr, Richard Adams

Summary

The hierarchy of supply management metrics aligns supply management with other supply chain functions. Part 1 in this series addresses why COE and functional leaders need to recognize the interdependencies and trade-offs between sourcing and procurement metrics that drive performance and cost.

Table Of Contents

Analysis

  • Introduction
  • Introducing the Hierarchy of Supply Management Metrics
    • Supply Management Value
    • Working Capital Management
    • Supply Management Excellence
  • Additional Insights on Supply Management Metrics
    • Use Metrics to Improve Performance
    • Events Impact Metrics and Interdependent Metrics
  • 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?
  • Appendix: Supply Management Metrics and Interdependent Metrics

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