Improuing supply chain performance by using order fulfillment metrics

In the past, companies hoping to impress customers on delivery responsiveness did so by allowing inventories to bloat. Today the costs of holding inventory, especially in high-technology markets, prohibit that behavior. Companies must now provide good service while maintaining low inventories. Thus, managers must carefully measure and manage their two conflicting objectives: service and inventory. The challenge is to improve customer delivery service and reduce inventories simultaneously. Such results can be achieved through thoughtful supply chain management.