FUZZY METRICS IN SUPPLY CHAIN AGILITY: INTRODUCTION

Supply Chain Management has had a long mileage of over 25 years. It evolved from logistics which concentrated delivering produced goods efficiently and effectively. SCM later extended those ethos across the network of distribution and shipment alone. However, later the management of manufacturing processes like planning, scheduling, materials handling, IT systems, ordering and paying started stealing the show while supply chains miserably failed to achieve their full potential. In addition, changing needs of customers and market turbulence challenged the performance of supply chains and overall supply chain profitability was always a dream for most manufacturers. Although adaptable supply chains were in the womb, organizations needed performance measurement tools to ensure their agility efforts were not in vain and also to make frequent comparisons with parallel agility methodologies.


Fig0Fuzzy Metrics in Supply
A supply chain performance measurement system is a valid tool which can at any point of time comment on the current status of agility of a supply chain system. A supply chain performance measurement system that consists of a single performance measure is generally inadequate since it ignores the interactions among important supply chain characteristics, and delineates from critical aspects of organizational strategic goals. Effective utilisation of resources, the desired output and flexibility (how well the system reacts to uncertainty) have been identified as vital components to supply chain success from yesteryear papers. Therefore, a supply chain model has to be constructed to measure the performance of these vital factors. Resources measures (generally cost) and output measures (generally customer responsiveness) are the two main factors widely used in supply chain models.