Question

What are some financial metrics of supply chain performance?

Answer 1

Some of the financial metrics of supply chain performance are:

1. Freight cost incurred for materials.

2. The gap between our investment and the payment received from the customer.

3. Production cost and other maintainance costs which will determine profit or loss.

4. Costs to cover risks that occur during supply chain.

5. Inventory costs

6. Procurement of raw material and dispatch of goods ratio .

These factors how well finances are utilised which is one of the main factors which determine the performance of supply chain.