Performance Measurement and Evaluation Questions & Responses

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>Chapter 19 discusses Performance Measurement and Evaluation of Suppliers.  Topics include:

Purchasing and supply measurement models.

Key performance metrics.

Characteristics of effective measurement systems.

Questions   =======================================================

Identify three strategic purchasing measure indicators (See Exhibit 19.1) for the Smart Logistics Initiative and explain why you believe they would be important for AGCO.

Develop a balanced scorecard for purchasing and supply at AGCO (See pages 774-775 of the textbook). Explain how a balanced scorecard will be necessary for the successful implementation of the Smart Logistics Initiative.

How would you establish a benchmarking system of Sustainability measures for new and existing suppliers of AGCO?

How can AI be used to manage supply chain disruptions in the future?

Please provide an insightful question about AI and the assessment of suppliers in the future.

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o 0 Connor Adolf Monday 1. Time delivery responsiveness, asset and integrated supply chain, administration and efficiency overhead would likely be the best measures to track the inbound supply chain and internal factory flow the main objectives of AGCO. Since redesigning their technological procedures it will be important that they are accurately logging this data and reacting to the any changes or disruptions in these metrics. These are important because they will need to adjust changes in lead times by potentially holding more inventory to improve their efficiency and lower overhead. 2. Balancing Financial, Operational excellence, customer satisfaction, and innovation will be necessary while going forward with the smart logistics initiative. Monitoring revenue from supplier base and process improvements will monitor the success of the initiative itself. Keeping pricing current in the ERP database will provide accurate and current data for the smart logistics system. Ramp up readiness will assure that AGCO is prepared for changes in demand. People development will assure that employees are able to keep the Smart Logistics system operational. 3. Sustainability measures should be capable of tracking suppliers/external as well as internal factors. Ranking sourcing and supplier sustainability practices and aligning them with internal factors such as efficiency and waste reduction practices will be important benchmarks that could be integrated into Smart Logistics Initiative. 4. Al is a strong force for modeling and simulation of potential outcomes alternatives and what if scenarios. Using Al to run potential scenarios that AGCO might face if they change policy or SOP and the potential affect downstream in their supply chain. 5. What wouldn't Al be useful for in this case? Tanner Degner 2:43pm 1. After taking a look at Exhibit 19.1 for the Smart Logistics Initiative, I have identified three strategic purchasing measure indicators that would be important for AGCO. The first one that I identified is quality because having the best quality product correlates into repeat customers and great reviews for potential customers. The second one that I identified is technology and innovation because having the best up to date technology makes your product both a want and a need for many customers. Companies like Apple and Samsung do such a great job of altering their technology to meeting the needs and wants of their consumers which keeps them on top of their fields. The third one that I identified is time/delivery/responsiveness because this is a huge factor in customers purchasing products. Customers want their products not only in good quality, but they want them fast. The better the supply chain the happier customers will be. 2. Goals costs AGCO Balanced Scorecard Objectives Indicators Initiatives Financial Perspective Increase sales and reduce Increase in net sales and a Financial Statements Negotiate with suppliers decrease in operating costs Create a team tasked with Increase launch of new Number of newly launched Customer Perspective Reference for products innovation and products products each quarter development Start at least 5 new product Get specific software to Develop new products Internal Process Perspective development projects every Project innovation reports manage product constantly month development Have at least 1 or 2 Learning and Growth Have a knowledgeable staff professionals with masters Number of professionals Select an employee to Perspective in product development degree or higher in product with masters or higher. receive masters training. development Balanced Scorecards will be necessary for the successful implementation of the Smart Logistics Initiative because it'l help companies identify and improve internal operations to help their external outcomes. It can measure how past performances have measured and see what can be improved exactly and how it will be improved exactly. 3. If I were establishing a benchmarking system of Sustainability measures for new and existing suppliers of AGCO, I would identify what I want to benchmark, identify my competitors, look and research trends, outline my objectives, and develop a plan for those objectives that were outlined. After all of that, you need to monitor the results to make sure you are getting what you set out for. You also need to analyze data to be able to tell what works and what doesn't and how you can improve in specific areas. 4. Al can be used to manage supply chain disruptions in the future in a number of different ways. Al can augment human interaction by allocating resources, assigning people and scheduling processes. Al can actually apply algorithms to discover insights and predict supply chain disruptions which would ultimately provide a clearer line of visibility of the supply chain in day-to-day operations. Having a clear line of visibility will allow for a company to see how things are being effected so that they can adjust to change and do their best to avoid a disruption. Al is becoming more and more useful and mainstream in this industry and it is a tool that can really help a company thrive in this industry. 5. What percentage of full control should be give to Al when it comes to assessment of suppliers in the future? Should their also be a human factor when selecting suppliers for a company to work with or should they trust fully in Al and let its process handle it all by itself? Reply
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Explanation & Answer

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1

Performance Measurement and Evaluation
Name
Institutional Affiliation

2
Performance Measurement and Evaluation
Question 1: Identify three strategic purchasing measure indicators (See Exhibit 19.1) for
the Smart Logistics Initiative and explain why you believe they would be important for
AGCO.
The strategic purchasing measure indicators available for utilization by the Smart
Logistics Initiative in this case will include delivery responsiveness, environmental sustainability
and internal customer satisfaction (Inam, 2021). In this case, I believe the three will be...


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I was struggling with this subject, and this helped me a ton!

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