Suppose you were asked to develop a plan to evaluate the performance of your organization and its performance with respect to its supply chain. (If your organization is not suitable, you may use another well-known company for your analysis). You will follow the process shown in Exhibit 19.4.

1. Evaluate the 5th tier in Exhibit 19.1. Which of the ten categories are most critical for your organization? Select two and explain why these should receive the most attention when evaluating performance. How do these tie into the organization's strategic goals?
2. For each category you selected, recommend three metrics that you think would best measure performance in that category with respect to your organization. Explain each one in detail.
3. For each of these metrics (six total), what would be the performance objectives? How would you arrive at these figures? Describe the methodology you would use to calculate the targets and explain where the information would come from.

Exhibit 19.4:

Company/Business Unit/Product Line INTEGRATION Strategic Plan/Vision/Goals ELEMENTS Purchasing and Supply Chain Strategic Plan/Vision/Goals Commodity Team Plans and Goals Top- Down Direction Supplier Plans and Goals Time/ Price/ Technology Asset & Internal Administration Governmental/ Revenue Quality Delivery/ Environmental and Customer Cost Sustainability Integrated Social Responsiveness Innovation Supply Chain Efficiency/Overhead Satisfaction M M Measure + Evaluate + Take Action Company/SBU Supplier, Risk & Contribution Strategic Performance Bottom- Up Targets Competitive Advantage