Benefits measurement
The main idea is to show how the performance of the supply chain can be improved with the integration of various tiers in the chain. Integration is prerequisite for effective sharing and utilization of information between different companies in the chain. Simulation-based methodology for measuring the benefits combines the simulation of business processes with the simulation of supply and demand.
Benefits measurement is realized by measuring improvements resulting from benefits realisation. The ‘before’ or 'as is' state needs to be measured and baselined in the benefits profile. Benefits realisation, which happens towards the end of the benefits management process, is reinforced by the implementation of relevant measurement processes.
To provide realistic and usable measures for benefit realisation is not straightforward.Benefits may be owned by different parts of the organisation. Some benefits can be tracked using financial measures, others will need more complex measures, or indicators, to demonstrate their realisation. Benefits profile provides the baseline before measurement and details of the measurement of improvements. Measuring benefit achievement should focus on the improvements in performance achieved by the business operations and changed working practices.
Measurement of Supply Chain Integration Benefits, Peter Trkman and Aleš Groznik, University of Ljubljana, Faculty of Economics, Slovenia, Interdisciplinary Journal of Information, Knowledge, and Management Volume 1, 2006
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