Anderson et al. (1997) lists seven principles. These are groupings of activities that a successful company with strong SCM ought to perform. The groupings are to some extent arbitrary, but they are reasonably inclusive and exhaustive.
Klapper et al. (1999) lists various metrics by which SCM should be evaluated. These are specific performance parameters that can, at least in principle, be expressed as numbers. Examples include percent on-time deliveries, logistics cost as a percentage of the cost of the goods transported, and the like.
The list in Klapper et al. (1999) is couched in military terminology; one metric, for example, is “Weapon system not mission-capable (NMC) rates.” To illustrate, an attack helicopter company with two out of 20 aircraft grounded for lack of parts would have a NMC rate of ten percent. One civilian equivalent of NMC might be, “Percent of production capacity idle because either parts or materials are lacking.” The exact metric would depend upon the company.
A metric is a way of measuring something. An activity is something to be measured. Here are some metrics pertaining to a runner; speed, metabolic base rate, cardiovascular efficiency. If the activity or “principle” being considered is “Being competitive in organized races,” then clearly the most relevant metric is speed. The others are important, but play supporting roles; a runner with a low metabolism and poor cardio efficiency is unlikely to be fast, and even less likely to be a good distance runner.
Supply Chain Management Student`s Name Institutional Affiliation Seven Principles of SCM According to Anderson et al. (1997), there are seven principles of supply chain management (SCM). First is adjusting supply chain according to customer`s needs. SCM is adapted to the needs of customer needs within a given segment. Second is customizing logistics network (Anderson & Favre, 2015). This is tailoring logistics network to suit each segment. Third is arranging demand planning throughout the supply chain. Supply chain managers share the info