No wonder that this section (2-D bridge portions particularly) focuses on topics that emphasize the growing personnel and importance of supply management in organizations. If you have a critical function like supply management to manage, with lots of people then it becomes important to develop goals and measures of how well you are achieving these goals. Metrics of department performance include total cost reduction ( eg. of financial metric); how well suppliers are integrated electronically for PO's, invoices etc.(IT metric) diversity supplier spending ( sourcing metric); supplier report cards ( relationship and control metric).
I particularly liked the separation of different types of audits like ISO, GAAP and Sox. The ISO is about standards and processes that assure quality and improvement, GAAP is about good practices and records in financial transactions, SOX pertains to reporting for public companies. The supply management organization must not only be able to meet the requirements of these different audits but aim to exceed standards.
Both departmental performance metrics and external metrics need alignment to organization mission for every supply management organization.
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