Performance measures must change to reflect current business conditions.

Manufacturing Business Technology, September, 2009

Julie Fraser

Economic conditions in the past year have led to many companies seeing their demand volume drop--and the mix change. Have companies re-weighted supply chain metrics to accommodate those shifts? For example:

- As consumer-goods demand moved from high-price to value-oriented items and from non-essential to essential goods, are companies not only changing the forecast, but also the target service levels? They should go up for those essential, lower-priced items and may be able to drop for luxury items. This may also shift which items are considered A, B, and C for planning purposes.

- Have industrial equipment and machinery makers adequately accounted for a shift in demand from new products to spare parts or refurbished units,...

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