Which metrics are used to assess supply chain performance?

The selected answer encompasses a variety of key metrics that directly reflect the efficiency and effectiveness of supply chain operations. Cost savings is crucial as it indicates how well the supply chain minimizes expenses during procurement and operations. Service levels measure the ability to meet customer demands in a timely manner, directly influencing customer satisfaction and overall business success.

Stock turnover rates highlight how effectively inventory is managed, showing how often stock is sold and replaced over a specific period. High turnover indicates efficient inventory management, minimizing holding costs and reducing the chances of obsolescence. Lead times, the duration between placing an order and receiving it, are essential for understanding how quickly the supply chain can respond to customer needs and market changes.

These metrics work together to provide a comprehensive view of supply chain performance, helping organizations identify areas for improvement and optimize their processes for better operational outcomes. Other options may relate to performance in different contexts but do not encompass the breadth of supply chain performance metrics as thoroughly as this one.