A framework for supply chain performance measurement. The objective of this licentiate thesis is to present a framework that identifies which. Authors accepted manuscript supply chain performance measurement systems. Todays marketplace is shifting from individual company performance to supply chain performance. Therefore supply chain performance measurement will be defined and restrained to other concepts such as supply chain controlling and monitoring. Keywords supply chain management, logistics, performance measurement. Being able to measure supply chain performance is important since it leads to a greater understanding of the supply chain and provides important feedback on the improvement progress. Supply chain management is a melting pot of different business functions and through utilizing key performance indicators kpis, measurements or metrics used by management, issues can be captured and efficiencies targeted.
Key performance measures for supply chain management from the colombian shipyard wilson adarme jaimes1 1 industrial engineering, production specialist, msc industrial engineering. This study creates a framework for supply chain measurement by presenting the main theory framework of supply chain performance measurement. Its a crossindustry diagnostic tool for supply chain management. Performance measurement of water desalination supply.
Empirical study of measuring supply chain performance dr. Performance measures are systematic attempt to learn how responsive an. Savvy organizations know that they can create a competitive advantage in their market by effectively tapping into the power of their supply chain. Measurement of performance in every business management is a crucial activity allowing for effectiveness increase. The lack of suitable performance measurement is especially noticed in complex systems as supply chains.
Supply chain performance crosses both functional lines and company boundaries. Sustainability is an important performance dimension that needs to be considered when designing supply chain. Sustainable supply chain performance measurement a case. We describe a number of supply chain performance measures that are expressly designed to support and monitor supply chain performance improvements across the supply chain and illustrate the shortcomings of several common metrics. Global supply chain management and performance measurement. This study presents the main theory framework of supply chain performance measurement. This guide is not meant to replace the logistics system as. Gyusun hwang, sumin han, sungbum jun, and jinwoo park. Sarode, lokmanya tilak college of engineering koperkhairane, navi mumbai 400 709 india v.
It is stated that supply chain performance measurement is extremely important in developing supply chain. Supply chain management has evolved historically from the use of management accounting techniques to measure the performance. Root cause analyses are limited by data aggregation, with the loss of full details, or. Supplier performance measurement is the process of measuring, analyzing, and managing supplier performance for the purposes of reducing costs, mitigating. Supply chain performance measurement system based on scorecards and web portals comsis vol. Pdf due to the increasing complexity of supply chains, researchers recognize the need for measuring and monitoring the performance of those systems. Performance assessment of global supply chains and. Supply chain performance measurement is used to evaluate the effectiveness and efficiency of organizational structures, processes and resources not only for one firm but also for the entire supply chain. We use your linkedin profile and activity data to personalize ads and to show you more relevant ads. Supply chain performance our supply chain strategy is a multiyear, port stakeholdersupported series of initiatives developed to achieve sustainable growth in all cargo sectors by coordinating development of the most reliable and consistent supply chain in north america. The approach would recommend that a small number of balanced supply chain measures be tracked based on four perspectives. Consafe logistics wanted to know if a performance measurement system for warehouse activities could be developed based on the scor model, and how it could be applied in.
The types of measures that companies should use and their advantages and drawbacks are provided, alongside useful information on implementing a. Principles of the supply chain performance measurement beata slusarczyk1, sebastian kot2 abstract. Therefore, this research develops and applies an integrated supply chain performance measurement framework that provides a more holistic approach to the study of supply chain performance measurement by combining both supply chain. Measuring supply chain performance measures prioritizing. Pdf measurement of performance in every business management is a crucial activity allowing for effectiveness increase.
Most systems are isolated, static, and with metrics that are backwardlooking and often not holistic. A framework for supply chain performance measurement article in international journal of production economics 873. Operational performance metrics in manufacturing process. Performance management in supply chain and operations. As it is known that the road project is one of the very high construction project roles. Measuring supply chain performance through kpi identification and. Sustainable, supply chain, performance measurement, sugar industry, numerical example. Pdf a framework for supply chain performance measurement. Realtime analytics and how its optimizing supply chain performance. It also supports the objectives of transparency and a mutual understanding of the whole supply chain.
Lean supply chains on one hand focus on inventory turnover ratio as a supply chain performance measure c. It can provide necessary feedback information to reveal progress. This licentiate thesis focuses on the analysis of the supply chain performance in manufacturing organisations, i. Performance measurement in a supply chain springerlink. Effectiveness is the extent to which customers requirements are met, while efficiency measures how economically. Companies must always be concerned with their competition. Therefore, we have to identify measures to characterise the business performance as well as supply chain effectiveness and development measures to characterise the level of maturity of the business process and the information technology employed by a company. Guide to key performance indicators for public health ma to help managers and logisticians focus on key logistics areas they want to improv them with a tool to do so. The measurement framework in this study offers guidelines for measuring the supply chain in manufacturing industry but the meas urement framework could be used in different areas of industry as well.
Supply chain performance measures are critical for maximising value in the supply chain and maintaining oversight. Supply chain performance measurement system based on. Purporse supply chain performance measurement the process of qualifying the efficiency and effectiveness of the supply chain. Introduction in many industries, especially those in manufactur.
Measuring supply chain performance through kpi identification and evaluation. Performance measurement is an essential element of effective planning and control, as well as decision making. Supply chain performance measurement mba knowledge base. The available performance measurement frameworks have their. The key elements for the measurement framework were defined as time, profitability, order book analysis and managerial analysis. Performance measurement system for warehouse activities. Performance measurement using the supply chain operations references scor will analyze how the supply chain management of contractor. Measuring the supply chain management performance is an essential task when attempting to optimize the supply chain for your business.
In particular, new definitions are developed for visibility, trust, and innovativeness. Supply chain performance measures stanford graduate. Pwc s performance measurement group supply chain benchmark is your supply chain contributing to competitive advantage. Supply chain performance measurement performance measurement is generally defined as the process of quantifying the efficiency and effectiveness of action neely et al. Supply chain performance measurement in the manufacturing. Study of performance measurement practices in supply chain management. Supply chain performance measurement on the road project has not been much discussed much today. The importance of understanding business intelligence analytics in realtime is constantly increasing as supply chain agility requirements rise, and because of this, thought leaders have begun to adopt supply chain analytics solutions. Timely and accurate assessment of overall system and individual system component performance is paramount. Measuring performance in supply chain networks andreas seiler salford business school university of salford, salford, uk submitted in partial fulfilment of the requirements of the degree of doctor of philosophy, july 2016.
The selected method and tools for performance measurement in. The analysis of supply chain performance measurement at. In spite of companies and managers recognition of the. How is efficiency measured in a supply chain and does. To identify the weak links in supply chain and improve its performance, evaluation of supply chain is important.
Charlie slammed the door on the way out of his bosss office. The broad objectives of supply chain management in the public sector are improved governance and preferential procurement for socioeconomic empowerment governance is defined as the interface with stakeholders, the source of the strategic decisions that shapes the organisation and its work, and ultimately accountability for the work and the actions of the organisation the. A performance measurement system providing information on ongoing process. Measuring supply chain performance through kpi identification and evaluation niclas gamme, martin johansson department of technology management and economics chalmers university of technology abstract supply chain management has become one. Performance measurement in humanitarian logistics a. A conceptual framework for supply chain practices khan rai waqas azfara, nawar khanb, hamza farooq gabrielc, a a, b,cnational university of sciences. Sunnapwar, lokmanya tilak college of engineering koperkhairane, navi mumbai 400 709 india. Details of choices of these performance measurements are listed and suggested solutions are given, with the hope that a full picture of supply chain performance measurements is developed. Performance measurement framework for engineering supply chain one of the primary concern on the supply chain management scm is the performance measurement because it is evident that there cannot be managed where there cannot be measured in supply chain performance. State of the art the following state of the art is an applicationoriented state of the art with a special view on performance measurement in humanitarian logistics. Revolution of performance measurement performance measurement selection is a complex process due to the high variety of available frameworks in previous literature.