RELATIONSHIP BETWEEN EFFICIENCY AND EFFICIENCY INDICATORS OF SUPPLY CHAINS

Abstract

The article examines the difference between the concepts of efficiency and effectiveness of supply chains. It is established that effective management of production processes and logistics of any enterprise is not possible without determining the relevant and structured information about the state of the elements of the supply chain and the processes that take place in it. It is researched and formulated that the generally accepted system of measuring the efficiency of the enterprise is a balanced system of key indicators of supply chain efficiency. But based on the analysis of different points of view of scientists, it is determined that to assess the effectiveness of supply chains of enterprises, the vast majority of scientists suggest using ten key indicators, namely: service quality, product quality, lead time (response rate), overall logistics costs, financial indicators ), value added, reliability, flexibility (maneuverability), power, assets. The differences between the SCOR model used at the three levels of metrics, which are designed to assess the effectiveness of decisions at the strategic level, have been studied and established. At the first level, there are indicators that characterize the general state of the supply chain – key performance indicators (KPI – Key Performance Indicator). At the second level – indicators that help diagnose level 1 indicators and identify deviations. The third level of indicators diagnoses the indicators of the 2nd level, respectively. In this case, all metrics must have a hierarchical structure. It is established that the main differences between the concepts of efficiency and effectiveness of supply chains are that efficiency is associated with minimizing all related resources and processes, while efficiency is aimed at achieving all goals, higher results, completed activities and customer satisfaction, focusing on the customer and the goal as much as possible, thus achieving supply chain optimization. Effectiveness is the highest attempt to reduce all resources by maximizing the use of all capacities, the response tries to be as flexible and customer-oriented as possible. A matrix of efficiency of supply chains is proposed, which takes into account the indicators of their efficiency. Efficiency and effectiveness can improve the productivity of the supply chain through enhanced collaboration with all relevant actors.