Principles of Logistics

This document discusses the principles of logistics and supply chain management. It covers the planning, implementation, and development of metrics for supply chain strategies. The importance of metrics and their translation into measurable goals is explained. The document also explores the development of a balanced scorecard for effective performance management.

Running head: PRINCIPLES OF LOGISTICS
Supply chain and logistics
Name of the student
Name of the university
Author Note:

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Question No 1:
How an organization would plan, implement, and develop a metric for their strategies
throughout the entire supply chain.
Answer No 1:
A large number of people have been talking about the different kinds of Key Performance
Indicators, Metrics, Analytics and other different indicators for the performance. According to,
Cassidy (2016) the importance for the selection of the exact metrics or the different types of the
measures is important as because it is quite critical in the logistical process. Some of the
guidelines or the steps that can be used to plan and implement organizational plans and metrics
for strategies related to supply chain strategy are as follows;
Step1: Translation of Organizational Objectives into Supply chain Metrics
Before the beginning of the supply chain metrics, the managers of the different
organizations must ensure that they have enough time to ensure that they can easily understand
the different types of important objectives. The understanding of these objectives helps to
translate these objectives into some specific objectives that are generally defined in the term of
metrics. The objectives of the business organizations are generally set by a leadership team and
consist of a large range of different kinds of objectives that are generally communicated along
with different types of quantifiable objectives (Kamalahmadi & Parast, 2016). The following
statistical based objectives are represented in the annual; report of the organizations. The report
includes the likes of the revenue growth, annual revenue, net profits and other such similar
quantifiable measurements. The main leader from the leadership team must therefore define the
supply chain task based on the understanding of the strategy and the understanding of the

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capability of the people who will implement the following strategy. The objective can be used to
drive performance objectives for specific individuals in the facility, and ensure that everyone
understands the objective.
Step 2: Development of Metrics and different kind of data sources
According to, Kerzner (2019) one of the major outputs of the first phase of the metrics
development process is the set of the different kinds of functional strategic objectives that
includes the likes of the business unit or the objectives set out by the supply chain management.
The time when there is an interaction between the supply chain managers of the organization
with the others, a large set of strategic directives begins to emerge accordingly. However, the
supply chain management strategies remains incomplete unless and until the supply chain
management executives are unable to translate broad level objectives into different kinds of
specific functional or plant level goals of the management (Bititci, Cocca & Ates, 2016).. Some
of the main examples of supply chain management goals are as follows;
a. Cost Reduction Goal
b. Inventory Goal
c. New Production Introduction
d. Quality Objective
Step 3: Example on how the metric works or the development of a balanced scorecard
The development of a balanced scorecard is one of the most important elements of the
supply chain strategy. The balanced scorecard generally addresses four different areas of the
organizational elements. They are as follows;

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 Way the customers see the organization
 Way the management see the shareholders
 Can value be created and improved in an effective manner
 Operational Excellence Perspective must be maintained
The alignment of all the strategies and actions of the organization according to the
different factors in the balanced scorecard is one of the best examples of the working of the
metric. However, no numbers were noticed on the observation.

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References
Bititci, U., Cocca, P., & Ates, A. (2016). Impact of visual performance management systems on
the performance management practices of organisations. International Journal of
Production Research, 54(6), 1571-1593
Cassidy, A. (2016). A practical guide to information systems strategic planning. Auerbach
Publications.
Kamalahmadi, M., & Parast, M. M. (2016). A review of the literature on the principles of
enterprise and supply chain resilience: Major findings and directions for future
research. International Journal of Production Economics, 171, 116-133.
Kerzner, H. (2019). Using the project management maturity model: strategic planning for
project management. Wiley.