Abstract
The paper outlines the process of enhancing the operation of Supply Chain Planning and Management (SCP/SCM) by standardizing Key Performance Indicators (KPIs) to analyse the efficiency, responsiveness, and traceability of the systems. The main challenge of the study will be to design and verify the simulation-based model that would fill the gap between the traditional, theoretically focused supply chain practices and pragmatic, focused-on-performance practice. It is aimed at how a more resilient, agile and data-informed supply chain network can be achieved through KPI-driven normalised evaluation. This is done by applying real-life data of manufacturing and retailing industries to present the simulation of inbound raw material flow and outbound distribution of the finished products. Any Logic, a multi-method simulation environment that combines discrete event, agent-based, and system dynamics modelling is used and allows an accurate reflection of a complex supply chain interactive relationships (such as inventory flows, demand variability, supplier reliability and transportation delays). Barring methodological considerations, the simulation will assess the supply chain performance in terms of such KPIs as Order Fulfilment Cycle Time, Inventory Turnover Ratio, Perfect Order Rate, and Transportation Cost per Unit. In the initial stage of simulation, improved order accuracy reveals 23%, improved lead time by 17%, and a broader supply chain by 28% based on the baseline models without a standardized assessment of KPIs. Also, the addition of RFID-based tracking to the simulation makes proactive resolution of the problems as well as real-time trace ability effective, where the visibility and responsiveness are improved by more than 35%.
Keywords: Ley Performance Indicator, Raw Material Procurement, Supply Chain Management, Supply Chain Performance, Traceability.