In the evolving landscape of global supply chains, traditional metrics like on-time, in-full (OTIF) delivery rates and landed costs appear increasingly inadequate. These measures, while historically significant, fail to embrace the complexities and strategic implications of modern supply chains. Drawing inspiration from the “Moneyball” philosophy, a new wave of performance assessment is emerging—one that acknowledges not merely execution but also the broader contributions to growth and risk management.
Many supply chain executives continue to rely heavily on familiar performance dashboards anchored in operational metrics. While these still play a crucial role, they are now seen as baseline indicators rather than comprehensive assessments of organisational effectiveness. Leading supply chain experts argue that this limited view risks marginalising supply chain functions within the broader business strategy. For instance, speaking at the 2025 Gartner/Xpo Symposium, Al Mendoza, Business Consulting Principal at EY, articulated the pressing need for change: “We traditionally still measure supply chain in a way that really doesn’t look at the growth and innovation agendas.” This raises the concern that if supply chain executives do not evolve their measurement frameworks, they may struggle to secure a seat at the strategic planning table.
To move beyond outdated metrics, Mendoza advocates for a revitalised approach to supply chain scorecards. This framework comprises four key dimensions: Core Operational Performance, Innovation and Agility, Ecosystem Resilience, and Customer Value Impact.
The first dimension, Core Operational Performance, retains its foundational status within supply chain evaluation, incorporating essential measures like OTIF, Cost-to-Serve, Inventory Turns, and Forecast Accuracy. These remain pivotal in assessing the reliability of supply chain execution. However, they do not encompass the full scope of how supply chain functions contribute to overall enterprise value.
The second dimension introduces a focus on Innovation and Agility. This area highlights the supply chain’s role in enhancing business responsiveness and facilitating product innovation. Metrics such as Time-to-Market for New Products and Innovation Sourcing Index help quantify how supply chains support research and development and market competitiveness.
Ecosystem Resilience constitutes the third dimension, assessing risk tolerance and response capabilities across supply chains. Here, metrics like Tier-2 and Tier-3 Supplier Visibility Score and Disruption Response Time provide insights that are crucial for informed decision-making amid increasing global uncertainties.
Furthermore, the Customer Value Impact dimension directly ties supply chain performance to customer experience. By focusing on measures like Customer Delivery Net Promoter Score and Order Accuracy Rate, organisations can better illustrate how supply chain operations underpin brand loyalty and customer satisfaction.
Articulating these insights effectively is paramount. Mendoza emphasises the need for Chief Supply Chain Officers (CSCOs) to communicate supply chain contributions in terms familiar to business leaders, such as revenue, market share, and profit margins. Many CSCOs currently frame their reports in strictly operational terms, which can hinder their recognition in strategic discussions. To bridge this gap, Mendoza recommends that supply chain leaders translate technical metrics into clear business impacts, co-own key performance indicators across functions, and enrich their narratives with real-world examples that underscore supply chain flexibility and responsiveness during disruptions.
As supply chains continue to face operational complexities and heightened expectations, the imperative to reposition them as strategic assets becomes clear. By fostering an integrated understanding of innovation, resilience, and customer value within their metrics, CSCOs can transcend traditional cost-focused narratives. The challenge lies in embedding this comprehensive view into executive discussions, ensuring that the supply chain is not only viewed through the lens of operational efficiency but also as a critical driver of competitive advantage.
In parallel sectors, such as semiconductors and logistics, the application of ‘Moneyball’ principles is becoming increasingly salient. Industry leaders are leveraging advanced data analytics to identify performance drivers and optimise processes, drawing parallels to successful strategies employed in sports management. This holistic, data-driven perspective not only enhances operational effectiveness but also cultivates a deeper understanding of market dynamics and consumer behaviour.
Ultimately, the transition from conventional supply chain metrics to a more nuanced, strategic framework is not merely a trend but a necessity. As organisations navigate a rapidly changing landscape, embracing the complexities of supply chain management through enhanced performance frameworks will be key to driving sustainable growth and achieving long-term success.
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Source: Noah Wire Services
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