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Supply Performance Management

In: Global Sourcing and Supply Management Excellence in China

Author

Listed:
  • Marc Helmold

    (Gloucestershire University)

  • Brian Terry

    (Regents University)

Abstract

A performance indicator or key performance indicator (KPI) is a type of performance assessment and evaluation. KPIs evaluate the success of an organisation or of a particular activity in which it engages. Often success is simply the repeated, periodic achievement of some levels of operational goal (e.g. zero defects, 10/10 customer satisfaction, etc.), and sometimes success is defined in terms of making progress towards strategic goals. Accordingly, choosing the right KPIs relies upon a good understanding of what is important to the organisation. “What is important” often depends on the department measuring the performance – e.g. the KPIs useful to finance will really differ from the KPIs assigned to sales. Since there is a need to understand well what is important, various techniques to assess the present state of the business, and its key activities, are associated with the selection of performance indicators. These assessments often lead to the identification of potential improvements, so performance indicators are routinely associated with “performance improvement” initiatives.

Suggested Citation

  • Marc Helmold & Brian Terry, 2017. "Supply Performance Management," Management for Professionals, in: Global Sourcing and Supply Management Excellence in China, chapter 3, pages 81-95, Springer.
    • Handle: RePEc:spr:mgmchp:978-981-10-1666-0_3
    DOI: 10.1007/978-981-10-1666-0_3
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    Cited by:

    1. Faiq Aziz & Nomahaza Mahadi & Wan Normeza Wan Zakaria & Nozama Mahadi, 2017. "The Impact of Open Innovation and Supply Chain Management Towards Firm Performance," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(11), pages 338-344, November.

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