An analysis on Supply Chain Performance Measurement

Abstract

In today’s business processes it has been stated, that a successful supply chain (SC) is a key factor to increase the company’s productivity and profitability and consequently leads to a competitive advantage. This leads to the conclusion that supply chain performance (SCP) needs to be measured to achieve success. The importance of performance measurement for the success of companies has also been emphasized by Santos (2002, p. 1246). Performance measurement is necessary for implementing and realizing strategic goals and further informs the decision makers at the operational, tactical and strategic level (Guanasekaran and Kobu, 2007). In order to maintain the competitive advantage, SCs need to be monitored and underly continuous improvements. Because of these reasons performance measurement and metrics are needed to support the SCP improvement. Through the increasing importance of SCP improvement, different metrics have been examined and developed in the scientific research. As a consequence, a great amount of different kind of metrics have been evolved, including insufficient metrics and a lack of appropriate metrics. Bagchi (1996) identifies 28 metrics, which are categorized in time, quality, cost and diagnostic measures. Gunasekaran et al. (2001) focuses on 18 metrics and links them to the SC activities: plan, source, make/assemble and (customer) delivery. Gunasekaran et al. (2005) suggests 28 performance metrics in new enterprises. Griffis et al. (2004, p. 98) summarize ten metrics, that have been identified as the “most commonly recommended logistics performance measures”. Beamon (1999, p. 281–284) provides exemplary metrics and links them to resources, output and flexibility. Hausman (2002, p. 67–69) classifies the metrics in service, inventory and speed. Furthermore, Gopal and Thakkar (2012, p. 521–522) provide a list, that shows how SCP can be measured in diverse ways. The provided insight into the different metrics shows its broad extent and the differences in its approaches, which makes it difficult to get an overview and a clear fundamental classification. Hence, the research objective of the presented paper deals with the identification of the different categories or core aspects used in the literature. In order to extent the research the second research objective deals with the examination whether the identified literature of the SCP categories show a relation to the terms global supply chain management (SCM), SC complexity and SC risk.