Define "performance metrics" used in supply chain management.

Performance metrics in supply chain management refer to quantitative measures that assess how effectively and efficiently the supply chain operates. These metrics provide objective data that can be analyzed to gauge performance in various areas, such as cycle time, order accuracy, inventory turnover, and delivery performance. By utilizing these metrics, organizations can identify strengths and weaknesses within their supply chain, drive improvements, make informed strategic decisions, and enhance overall operational efficiency.

In contrast, qualitative assessments of vendor relationships, while important for understanding partnerships, do not provide the objective, measurable framework that performance metrics offer. Regulatory requirements for logistics operations focus on compliance and governance rather than performance evaluation. Informal observations of supply chain outcomes can provide anecdotal insights but lack the structured approach necessary for systematic evaluation and continuous improvement. Thus, the focus on quantitative measures distinguishes performance metrics as crucial tools in the optimization of supply chain processes.