Performance Metrics in Digital Supply Chain Paradigm

Abstract

Globalisation in corelation with technology development has recently made it possible to compete in business and prosper. Digital technology must now be included by companies if they are to remain sustainable and globally competitive. The fourth industrial revolution has altered how individuals interact with their surroundings and communicate. The supply chain has begun to be digitalised in order to accommodate digital goods and services as internal business processes change so quickly. Innovative strategies, including technologies for digital transformation, are required to obtain an advantage in the digital supply chain. Current methods for global supply chain management and logistics for moving, storing and managing cargo are not suitable for the future from an economic, environmental or social standpoint. To assess how effectively a company is performing in achieving its goals, supply chain metrics and performance measures obtained through benchmarking are essential. Monitoring a company's operations, performance and behaviour is made possible via performance metrics. They ensure that the supply chain is controlled and operating efficiently by enabling visibility into key operations. This chapter provides insights into the performance metrics which control the supply chain activities internally and externally. The Key Performance Indicators known as KPI’s which drive the organisation towards its intended results have been listed, and their significance towards the digital supply chain has been elaborated in detail. The measurements can be used to determine inventory accuracy, turnover and inventory-to-sales ratios. Therefore, by monitoring supply chain indicators, a business may quickly pinpoint areas that require improvement or where supply chain effectiveness may be increased. To maximise the gains of implementing a Digital Supply Chain (DSC), it is crucial to identify all of the potential opportunities, pain spots, difficulties and development chances beforehand.