Relationship Between Various Key Performance Indicators of Supply Chain and Net Sales

Abstract

Since 1990, extensive studies and analyses have conducted in the area of supply chain performance management. Cost and non-cost viewpoints are various supply chain overview measures; political, tactical or operational focus; business process opportunities, and economic point of view— standardized measuring systems used as a tool for efficient supply chains to accomplish their functional goals. An empirical study has performed with some of the most commonly discussed organizational performance mechanisms, and it demonstrates that several of the evaluation system 's validity must also be examined. Because of the sophistication of such processes, the method of determining effective supply chain performance metrics is challenging. The resource skills required are, therefore, often challenging for individual organizations to acquire and maintain, so sound decision-making is crucial in supply chain management. This regression analysis helps consumers to predict and fulfill potential needs and standards. The paper explores the connection between the main determinants of performance and total income in the supply chain. It also explores the connection between logistics spending and net sales, which provide a forum for successful decision- making. The findings presented in the paper are based on data from 4 separate companies. Multiple regressions were then performed to research the relationship between the identified variables. The findings support the proposed approach and give credibility to present decision-making strategies that may impact the actual outcome of the company, which is Net sales.