Supply chain management scm has been a major component of competitive strategy to enhance organizational productivity and profitability. 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. Effectiveness is the extent to which customers requirements are met, while efficiency measures how economically a firms resources are utilized to achieve a. Supply chain management dimensions, supply chain performance and organizational performance. The working group was asked to develop metrics and standards and an action plan to guide ontario hospitals in supply chain transformation. Furthermore, the implications of the study are offered for both academic and practical use. This study presents the main theory framework of supply chain performance measurement. Analytical hierarchical process ahp has been applied to select the best performance measurement framework based on supply chain macro processes. The measurement framework is tested by measuring case supply chain performance.
Automate key supplier performance measurement activities. In recent years, organizational performance measurement and metrics have received much attention from. The aim is to evaluate these challenges, specifically in the context of supply chain risk. The model itself is organized around the six primary management processes of plan, source, make, deliver, return and enable. Performance measurement is an essential element of effective planning and control, as well as decision making. Selection of supply chain performance measurement frameworks. With substantial resources dollars and people being applied towards. The literature on scm that deals with strategies and technologies for effectively managing a supply chain is quite vast. This study is in line with this call for such added investigation.
We developed a framework to promote a better understanding of the importance of. The process of choosing appropriate supply chain performance measures is difficult due to the complexity of these systems. In this paper we propose a framework model to help companies measure and. The relationship of enterprise metrics to major supply chain attributes and how they measure the degree to which the supply chain is exhibiting those attributes. Now gartner has translated this framework into a dynamic benchmark database that enables you to compare key supply chain performance metrics with your peers. In recent years, organizational performance measurement framework and factors have received much attention from researchers and practitioners gunasekaran et al. The theoretical framework, focusing on relevant aspects when measuring supply. Bsc and similarly balanced performance measurement systems prove to be superior to systems as compared to traditional measurement systems. Supply chain management dimensions, supply chain performance. Measuring supply chain performance measures diva portal. A framework for supply chain performance measurement semantic. Using the current literature and the results of an empirical study of selected british companies, we developed the framework presented herein, in hopes that it would stimulate more interest in this important area. The framework is intended to summarize the essentials.
This scpm supply chain performance measurement framework proposes the measures and metrics for the engineering supply chain performance. Production economics 87 2004 333347 a framework for supply chain performance measurement a. Firms are required to focus on the supply chain performance measurement, as it includes the interdependencies across the firms 7. Developing a sound performance measurement model is a critical task for a supply chain and its members in order to examine their current status and identify improvement opportunities for steering their future direction.
Brewer and speh 2000 have developed a model for evaluating supply chain performance using balance scorecard. A framework for supply chain performance measurement article in international journal of production economics 873. Performance measurement a report by the hospital supply chain metrics working group. The measurement framework in this study offers guidelines for measuring the supply chain in manufacturing industry. An emergent framework for supply chain risk management and. Changes in the shape of risk ie sources, nature, triggers, scale, rapidity and severity of consequences relating to supply chains pose challenges for risk management and the underpinning discipline domains such as operations research that have traditionally provided guidance and support. Supply chain performance measurement framework for small.
Performance measurement principles in order to measure performance on a consistent basis across the organization, the following five principles have been developed to help guide this process for the cta. Performance measurement a report by the hospital supply. The key elements for the measurement framework were defined as time, profitability, order book analysis and managerial analysis. Development of a supply chain performance measurement. It adopts the sixsigma metrics and includes three components i. Review of various supply chain performance measurement. An integrated framework for supply chain performance. Abstract supply chain management scm has been a major component of competitive strategy to enhance organizational productivity and profitability. There are a number of wellknown models and frameworks for operations, logistics and supply chain management.
Conceptual framework of supply chain management scm. Aug 28, 2009 the purpose of this paper is to propose an integrated supply chain performance measurement framework for the case of small and medium scale enterprises smes using set of qualitative and quantitative insights gained during the case study research. Root cause analyses are limited by data aggregation, with the loss of. Hence it is essentially a businessprocessbased performance measurement framework.
The framework developed enhance the use of a group of metrics across all organization, this. The supplier performance measurement benchmarking report. Figure 9 framework for prioritizing supply chain performance measures. Track the performance of a broader portion of the supply base 2. A framework for supply chain performance measurement. Supply chain management enablers lifecycle activities, support functions, and performance measurement all are influenced by certain elements that enable their performance. Introduction in many industries, especially those in manufactur. The gartner supply chain hierarchy of metrics benchmarking. The information systems, human resource management, and infrastructure are considered to be critical enablers for effective scm. Review of various supply chain performance measurement frameworks 1003 the integration of information technology in business, some it based performance measurement framework have been developed. May 14, 2010 developing a sound performance measurement model is a critical task for a supply chain and its members in order to examine their current status and identify improvement opportunities for steering their future direction.
The kpi can be defined as the performance indicators that have significant impact on the overall performance of an organization in the areas of strategic, tactical and operational planning and control. A performance measurement framework for monitoring supply chain sustainability verdecho mj1, alfarosaiz jj, rodriguezrodriguez r abstract in the competitive business environment achieving sustainable supply chains is an issue that is still to be solved despite its relevance. It is stated that supply chain performance measurement is extremely important in developing supply chain. Transparency of supply chain costs performance management in supply chain and operations steering value chain activities towards exceptional performance the supply chain reporting should provide a balanced view on customers, demand and supply as well as on financials. A framework for supply chain performance measurement core. The theme is given by a structured model framework. Standardize supplier performance measurement procedures across the enterprise 3. Supply chain performance measurement framework for small and. The aim is to evaluate these challenges, specifically in the context of. Chain metrics working group, their work is set out in the report. That said, measuring and reporting supply chain sustainability is rarely about adding decimal places to impact calculations. In recent years, organizational performance measurement and metrics have received much attention from researchers and. Performance assessment of global supply chains and moving. Most systems are isolated, static, and with metrics that are backwardlooking and often not holistic.
The performance measurement on supply chain is an appraisal on the performance including overall operation level, the node enterprises in the supply chain, the cooperation relationship between the node enterprises, etc. The use of supply chain metrics to monitor and assess performance against the business objectives of o sustaining weapon system support to the nations military forces. We developed a framework to promote a better understanding of the importance of scm performance measurement and metrics. Supply chain performance measurement and improvement.
An integrated framework anant deshpande center for distance learning, state university of new york empire state college 1 west avenue, saratoga springs, ny, usa 12866 tel. Moreover, there are undoubtedly other ways to structure supply chain sustainability measurement and reporting. Figure 10 product life cycle phases and different product characteristics, their supply chains, measures and metrics in addition to the measurement situation. There are different types of strategies in supply chain management. The purpose of this paper is to propose an integrated supply chain performance measurement framework for the case of small and medium scale enterprises smes using set of qualitative and quantitative insights gained during the case study research. Since the already present frameworks are quite generalised, this paper proposes a specialised framework for supply chain performance measure in information technology enabled service ites industry.
Measuring supply chain performance measures prioritizing. Performance management in supply chain and operations. The types of measures that companies should use and their advantages and drawbacks are provided, alongside useful information on implementing a supply chain performance measurement system. The gartner hierarchy of supply chain metrics has long been regarded as the industry standard for endtoend supply chain performance measurement. A performance measurement framework for monitoring supply chain sustainability verdecho mj1, alfarosaiz jj, rodriguezrodriguez r abstract in the competitive business environment achieving sustainable supply chains is an issue that is. Measuring supply chain performance emerald insight. A conceptual framework for measuring supply chain performance 41 business perspective. Finally, performance metrics for the selected framework are determined. Collaborate with suppliers on performance metrics, reporting, and improvements 4.
So, for evaluating and selecting supplier a multiattribute decisionmaking technique, an analytic hierarchy process ahp, is used to make decision based on the priority of performance measures. All this should not dissuade users, however, from starting to measure their supply chains performance in the context of assessing the success of initiatives aimed at achieving strategic objectives. Enriching the industry with knowledge and benchmarks through the application of the supply chain. Mcgaugheyc a department of business administration, university of illinois at springfield, one university plaza, springfield, il 627035407, usa b ace infotech, inc. Supply chain performance measures are critical for maximising value in the supply chain and maintaining oversight. Development of a supply chain performance measurement framework for the south african wine industry 3 or metrics within a company should function as a system where the measurements work together to support the overall strategy.
The main objective here is to identify the kpi in supply link performance evaluation. Measurement of supply chain sc performance with regards to key practices of. The purpose of this paper is to adopt a supply chain performance measurement scpm framework as proposed by dweiri and khan 2012 to model a novel supply chain. As described in the background, supply chain management has gained more and more attention during the last four decades. Performance assessment of global supply chains and. This paper addresses the problems of developing a supply chain sc performance measures in practice. The proposed theoretical framework will also address the gap in the literature in terms of consideration of more than one performance measure. Request pdf a framework for supply chain performance measurement supply chain management scm has been a major component of competitive. Figure 1 depicts an integrated hierarchical supply chain performance measurement system. The use of the proposed frame work would increase the profit of it. Of the factors by which supply chains compete, flexibility can be rightly regarded as a critical one.
Performance measurement phase ii a framework for action. This paper describes a decision framework for evaluating and selecting supplier performance in a supply chain. Two of the most prominent are the scor model and the balanced scorecard, and the interested reader is referred to these. Pdf performance measurement of supply chain management. Today, organizations seek to achieve the those successful characteristics by first establishing a measurement framework that links measures to strategy, goals, and objectives and cascades down the organization to align goals and anchor accountability at every level figure 1. Strategic framework for supply chain management rohita kumar mishra abstractthe relevance of supply chain management scm strategies is much more in this competitive world, where there is fluctuating market. A performance measurement framework for monitoring supply. In todays world, supply chain management scm plays a key strategic role in increasing organizational effectiveness and accomplishment of organizational.
The paper presents an overview and evaluation of the performance measures used in supply chain models and also presents a framework for the selection of performance measurement systems for manufacturing supply chains. Dalu ministry of msme, goi, mechanical engineering dept. This research proposes an integrated framework for supply chain performance measurement. At the same time, the demand for being able to measure supply chain performance has increased, implying that the need for finding new ways to measure performance has increased. The framework for performance measurement on supply chain. Supply chain management, performance measurement framework, performance measurement factors, analysis hierarchy process ahp, thai.
Citeseerx document details isaac councill, lee giles, pradeep teregowda. How to measure supply chain performance material handling. This phase ii report builds on the framework developed by the working group in the phase i report, performance measurement a report. Pdf a framework for supply chain performance measurement. Citeseerx a framework for supply chain performance measurement.
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