Price, Cost, Value, Benefit, Gain, Worth...Which Way Do I Turn?

Author(s):

Nick Little, MCIPS
Nick Little, MCIPS, Assistant Director, Executive Development Programs, The Eli Broad Graduate School of Management, Michigan State University, 517/353-8711 x 71006; littlen@bus.msu.edu

89th Annual International Conference Proceedings - 2004 - Philadelphia, PA
Abstract

Today’s economic and business conditions require everyone involved in procurement and supply chain management to be continually reviewing the effectiveness and efficiency of their performance through metrics and measurement. However, behaviors are frequently driven by metrics and targets imposed by people other than the individuals most affected by those very measures. The wrong measures can deliver the wrong behaviors. This presentation will address a number of learnings from the presenter’s personal experience of over 20 years practical supply management recently enhanced through a number of years working with leading academics. Some common “myths” will be exposed, some “givens” will be questioned, and some lessons learned by companies along this path will be shared. This paper will focus on the emphasis placed on different metrics at different times and will suggest some ways companies can begin to apply a structured approach to selection and maintenance of the set of measures that will be most likely to help them successfully achieve sustainable competitive advantage through integrated supply chain management.

Price, Cost, Value, Benefit, Gain, Worth...Which Way Do I Turn? — 62 KB (PDF)