Measuring Supply Chain Performance

Table of Contents


According to Chopra, Sunil, and Meindl as cited in Hugos, “A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, the transformation of these materials into intermediate and finished products and the distribution of these finished products to the customers.” In simple terms, a supply chain is a system of the conveniences of a business that facilitates getting of raw materials, conversion of the raw materials into midway and end products, and the delivery of the finished products to the customers. As such a supply chain encompasses all major business processes and thus its performance is always a great concern to the executive officers and other stakeholders of virtually all companies in a given market segment. This task is an analysis of the supply chain structure at Eastern Bag and Paper with a view to finding out the indicators chosen by its executive in measuring the performance of its supply chain.

Eastern Bag and Paper Supply Chain Performance

Ondersteijn states that it appears that there is an accord amongst scholars that there is no supply chain measurement system that is inclusive, universal, measurable, and consistent and that there is less agreement on what such a system should look like. Consequently, different scholars suggest the use of different categories of performance indicators such as customer satisfaction, flexibility, efficiency, resources, output, and adaptability. The executive of Eastern Bag and Paper chose to monitor the above-mentioned indicators in measuring the performance of their supply chain with special attention pegged on customer service.

Generally speaking, customer satisfaction should be at the epicenter of a company’s strategies, plans, and policies at all times since the customer is the main element of a given business entity that brings revenue to the business. Hugos provides that Eastern Bag and Paper has developed a very efficient distribution arrangement aimed at supporting high levels of customer service that is at the same time cost-efficient. Hugo adds that this company always measures and makes changes as considered necessary to keep up high levels of customer service.

It is important to note that high-level customer service and care begins or originates from well inspired and motivated personnel since it is common knowledge that a workforce that is not happy can not give happiness to the customers. This fact is well known to the executives of the Eastern Bag and Paper no wonder Don Burton who is the Director of operations states that their performance measurements permit them to follow individual efficiency and error rates by a worker. As far as the adaptability of this company is concerned Meredith the company’s CEO observes that process re-engineering and investments in new technology to reduce mistakes and increase efficiency is something that their company does every year.

As observed earlier, there is no single supply chain measurement system that is absolutely inclusive and thus it is unsafe to argue that the indicators chosen by the executives of the Eastern Bag and Paper provide information about the entire supply chain’s performance. However, their choice of customer service as a core indicator is prudent and commendable because a business that does not satisfy its customers risks not only losing its market niche but also falling Khosrow-Pour. When the customers are satisfied it is easier to improve on the performance of the other parts of the supply chain like the owners and the personnel since the company can even afford the resources needed to pay them well.


It is obvious that circumstances surrounding competition in a given market segment are bound to influence an executives’ choice of indicator(s) chosen to monitor the performance of the supply chain. However, the metrics that I would consider to improve the identification of the supply chain management are main factors closely related to customers, owners, and the personnel as well as the wider community. My insistence on these elements of the business is anchored on the premise that companies are essentially the people who make them and thus the performance of their supply chain is pegged on the satisfaction and goodwill of these people who drive its operations and processes.

Reference List

Hugos, M. (2006).Essentials of Supply Chain Management. Toronto, Ontario: John Wiley &Sons.

Khosrow-Pour, M. (2006).Emerging trends and challenges in information technology management. New York: Idea Group Inc (IGI).

Ondersteijn, C.J.M. (2006).Quantifying The Agri-food Supply Chain. New York: Springer.

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