Supply chain with time as a critical success factors: For a single company, cash-to-cash cycle is measured by adding the average number of days that accounts receivable are outstanding and the average number of days inventory is on hand and subtracting the number of days accounts payable For a supply chain, the same measure is measured between most downstream and the most upstream link to the end customer.

Supply chain with flexibility as a critical success factors: The innovation and learning measure "rate of improvement in product finalization point" is on the premise that postponing the finalization of finished goods minimizes stockouts and markdowns In other words, postponement enables customer orders to drive the finalization of products in real time. The process measure "number of choices relative to average response time" assesses whether the supply chain can offer variety (in terms of patterns, order configurations, SKUs etc); without unduly delaying the time taken to fill the order The goal is to either increase the variety offered while at a minimum, maintaining current response time capability, or decrease response-time capability while maintaining the current breadth of order configurations supported. The customer measure "customer perception of flexible response" uses survey data to determine if the customers feel confident that their order requirements will be met without experiencing excessive delays. Improving the process measure "number of choices relative to average response time" should improve the customer's perception of the supply chain's ability to respond flexibly The financial measure "supply chain gross margin" compares the supply chain's raw material and conversion costs to the revenue realized from the end customer.

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* Contributed by -
Krishnakanth K. K. & Pankaj Ghai,
PGP Students.
IIM Lucknow.