Performance Measurement and Design in Supply Chains

PurposeThe purpose of this paper is to review the existing literature on supply chain performance measures and metrics (PMMs). It provides a critical evaluation of 234 articles published in past 24 years.Design/methodology/approachThe paper examines the studies published from 1991 to 2014 by adopting the bibliometric technique of citation and co-citation analysis.FindingsThe analysis of the results indicate that the number of articles on supply chain PMMs is increasing at its fastest pace in the past few years. Furthermore, the study identifies some of the most influential articles on performance measurement and metrics. Finally, it concludes that there has been a transition from traditional to more sophisticated performance measurement system.Research limitations/implicationsThis study focuses only on supply chain performance measurement and metrics and excludes research on performance management and control. Thus, researchers may explore and extend this area of research.Originality/valueTo the knowledge of the authors, this is the first study to review the literature on supply chain PMMs by using citation and co-citation analysis. The study includes 234 articles over the time of 24 years (1991-2014).

The lean and resilient management of the supply chain and its impact on performance

PurposeThis paper aims to propose a dynamic model for measurement supply chain performance (SCP) based on a dynamic balanced scorecard (DBSC). Balanced scorecard (BSC) can be defined as a popular performance measurement method that can translate the strategy into a set of performance indicators and manage the status of implementing the various strategies. However, BSC is unable to simulate the complicated environment and the dynamic behavior of performance metrics. Therefore, the author combines BSC with system dynamics (SD) to explore a more efficient tool for measurement SCP.Design/methodology/approachA dynamic causal model is proposed based on the causal hypotheses. The developed DBSC enables managers to evaluate and measure the SCP in a much-balanced way. Using DBSC makes it possible that different SCP metrics to be reviewed and distributed into the four above-mentioned perspectives. It also enables supply chain (SC) managers to evaluate different strategies to improve SCP.Findingsinvestigates two strategies to improve SCP as follows: (1) competitive strategy and (2) harvesting big data and using data mining techniques to determine the customer's expectations and then compares the results of these two strategies based on the four perspectives of DBSC and introduce the best strategy. Finally, harvesting big data and data mining is selected as the best strategy.Originality/valueThis study proposes a novel strategic management tool for measurement SCP and simulation of the complicated environment and the dynamic behavior of performance metrics. The proposed DBSC model enables managers to compare different strategies and select the best strategy.

Unlocking blockchain's potential for supply chain transformation: A robust system analysis for enhanced strategic performance

The first part of the paper deals with the FEM computation of deformations, stresses and strain in the surrounding area of internal and external circular artificial failures with a set of given geometrical dimensions in steel pipelines. For the investigation of this problem three groups of mechanical models are applied: multilayered elastic shell, 3D elastic solid and 3D elastic-plastic solid FEM models. The aim of this analysis is to clarify the case in which the pipeline fails. When a pipe fails and needs repair or reinforcement, this is called critical case. In the second part of the paper the repaired pipes are investigated. For repairing of the internal and external failures, internal or external multilayered textile composite reinforcements are applied by winding technology. The task is to determine the width of the reinforcement and the number of layers needed for repair. The different mechanical models (multilayered elastic shell, 3D elastic solid and 3D elasto-plastic solid) are compared on the basis of numerical results. The critical cases are determined and the questions of repair are answered also numerically.

Health care decision makers often have a limited understanding of the costs associated with quality improvement efforts. However, such information is vital for managers to make appropriate operational and financial decisions to ensure high quality health care services. We used the Cost of Quality (COQ) model to estimate the cost of quality-related activities at the Makerere University-Johns Hopkins University (MU-JHU) Laboratory in Uganda. Using data collected from January 1, 2007–December 31, 2007, we allocated the direct costs associated with quality-related activities in the laboratory across COQ’s cost categories: prevention, appraisal, internal failures, and external failures. We found that approximately 94% of total COQ was spent on costs of “good quality” (prevention and appraisal), while 6% was spent on costs of “poor quality” (internal and external failures). The high percentage of COQ spent on prevention and appraisal activities is consistent with efforts to ensure high quality laboratory results. Future studies should try to link COQ to health outcomes and quantify “hidden” failure costs. This CE update introduces the Cost of Quality (COQ) model and illustrates how it can be applied to a clinical laboratory setting to help managers and executives make more informed decisions about spending on quality-related activities. We begin with an overview of the COQ concept and its 4 main cost categories, followed by an illustration of how the model can be applied in a medical laboratory setting. We then discuss some of the advantages and limitations of this methodology and provide suggestions for future research. * COQ : Cost of Quality MU-JHU : Makerere University-Johns Hopkins University IOM : Institute of Medicine P-A-F : prevention-appraisal-failure CAP : College of American Pathology PCR : polymerase chain reaction QA : quality assurance LIS : laboratory Information System EQA : External Quality Assurance CSC : Customer Service Concern PM : preventive maintenance QC : Quality Control PIR : Process Improvements Reports GLP : good laboratory practices GAAP : generally accepted accounting principles

In the recent years, supply chain has been recognized as a key factor of companies' success and particularly one of the best means by which companies can achieve a goal of paramount importance: enhance customer satisfaction. That is why performance measurement and management systems of supply chain (SC PMMS) became a crucial topic for enterprises and particularly for multinational corporations. This paper intended to provide a critical literature review on measurement and management of supply chain performance. To do so, relevant works appeared in the international journals from 2000 to 2015 are gathered and analysed. The purpose of this paper is to contribute to a more complete understanding of the current challenges related to SC PMMS, which should help future research works related to this topic. Findings reveal that supply chain performance management is clearly less broached in comparison with performance measurement of supply chain. The topic is still an open research area. In particular, the study highlights the lack of systems thinking to face current challenges of the field.

Discusses the implementation of cost for quality programmes in non‐manufacturing functions, suggesting their necessity in enabling management to accept the true cost of not getting it right first time. Outlines methods of analyzing work, highlighting prevention, appraisal, internal failure, external failure, exceeding requirements and lost opportunities. Reviews the “no blame” philosophy, and provides examples of internal departmental failures. Explores the process of re‐education. Suggests that no matter how successful a company is, the key to success is to look for a better way of doing business.

Batu City is one of well known cities in East Java Province which is as center of tourism destination and also as center of apple production. There is growing small scale industry related to apple processed products, such as apple chips. In an effort to support the supply of raw materials and production planning, it is necessary to know the achievement of supply chain performance in a small industry of apples chips in Batu City. The method used is qualitative analysis to know the system of raw material inventory control and production planning system applied and analyze the performance of supply chain management, supply chain mapping with SCOR (Supply Chain Operations Reference) method, measurement of supply chain performance by using measured performance attribute that is Supply Chain Reliability, Supply Chain Responsiveness and Supply Chain Agility with performance metrics of Perfect Order Fulfillment (POF), Order Fulfillment Cycle Time (OFCT), Upside Supply Chain Flexibility, Upside Supply Chain Adaptability and Downside Supply Chain Adaptability. The results of this study indicate that the system of raw material inventory control and production planning system have been applied. Supply chain mapping, performance measurement of supply chain management need to be developed more to improve supply chain management performance in the small industry apple chips in Batu City.

The growing importance of the management of supply chains has motivated researchers and practitioners to develop and implement measures that can be used to establish supply chain performance. The measurement of supply chain performance requires the creation of an inter-organisational assessment system. Such systems can feasibly be used to identify opportunities for improved supply chain efficiency and competitiveness, to help understand how companies operating in supply chains affect each other’s performance, to support the supply chain in satisfying consumer requirements and to assess the result of an implemented initiative.

Performance measurement is known to be the best way of investigating the supply chains' success. In this regard, managers can identify the root causes of weakness points and improve supply chain's performance through analysing and solving these problems. Concerning this problem, various supply chain performance evaluation models have been presented in literature. Through all of the models, this paper used supply chain operations reference (SCOR) model for performance measurement of three Iranian automotive supply chains. First SCOR model is employed to define the performance criteria. Afterwards, technique for order of preference by similarity to ideal solution (TOPSIS) is used to determine the supply chain that performs best. In this paper, expert's judgment is used to determine the criteria's value and weight but uncertainties in expert's judgment was unavoidable, also experts cannot reach an agreement on the method of defining linguistic variables based on fuzzy sets. So, paper used interval-valued fuzzy set to solve these problems. To the best of authors' knowledge, this is the first study that have applied interval-valued fuzzy TOPSIS in group decision-making in order to evaluate and improve the performance of supply chains on the basis of SCOR model.

Purpose: This study examines the impact of climate change on global supply chain management by analyzing the influence of climate-related variables, specifically CO₂ emissions, temperature fluctuations, and flood-related economic damages, on key logistics performance indicators. These indicators include the customs score, infrastructure score, logistics performance index, and logistics competence and quality score. Methodology: A mixed-methods analytical approach was employed, incorporating regression analysis, correlation matrix evaluation, and principal components analysis (PCA), supplemented by visual analytics. This methodology enabled the identification of relationships between selected climate variables and supply chain performance metrics across various countries. Findings: The study reveals a statistically significant positive association between CO₂ emissions and improved logistics performance indicators. This suggests that regions with higher industrial output and consequently higher emissions often have more advanced logistics infrastructure and trade efficiency. Conversely, while flood-related economic damages exhibited a negative correlation with logistics performance, the relationship lacked statistical significance. The findings underscore the complex dynamic between industrial growth, environmental impact, and logistics efficiency. Unique Contribution to Theory, Practice, and Policy (Recommendations): This research contributes to the theoretical discourse by highlighting the dual role of industrial activity in enhancing logistics performance while exacerbating environmental degradation. Practically, it calls for urgent investment in climate-resilient infrastructure and adaptive logistics strategies. From a policy perspective, the study advocates for integrated climate and trade policies that align economic development with environmental sustainability. Future research should explore indirect and long-term effects of climate change on supply chains to inform more robust mitigation strategies.

Availability management is a major factor in successful supply chain management since it influences key supply chain performance metrics such as customer service level and inventory. The availability management process involves generating availability outlook, scheduling customer orders against the availability outlook, and fulfilling the orders. The process is also associated with many uncertainties such as customer demand, customer preference of product configuration, and changes in supply constraints and various supply chain policies, which also affect the supply chain performance. As e-commerce is becoming a major part of business transactions it is much easier for customers to compare availability and services from many different sellers. Therefore, it is important for sellers to process customer orders in real-time, promise ship dates, fulfill the orders as promised, and to have availability of resources to be able to promise customers desirable ship dates. In today’s competitive and dynamic business environment, companies need to continually evaluate the effectiveness of the availability management process and supporting IT system and look for ways to transform the process to achieve better customer service and profitability. To do that, there is a need for an easy-to-use modeling tool that can accurately assess the effectiveness of the existing availability management process, evaluate the impact of potential changes in the process and identify opportunities for improvement. In this chapter, we describe an availability management simulation tool that was developed at IBM to support the continuous effort to improve the availability management process. The simulation model has become a critical tool in making strategic business decisions that impact customer service and profitability at IBM.

Purpose– The aim of this paper is to develop a comprehensive framework of supply chain performance that includes relationship, operational, strategic and economic performance measures.Design/methodology/approach– The literature regarding inter-organizational performance including: supply chain management, logistics and marketing performance measures is reviewed. A synthesis of the review provides the foundation for developing a comprehensive model of supply chain management performance.Findings– The review and synthesis finds that supply chain performance focuses primarily on operational and economic performance measures while paying less attention to relational and strategic performance measures. The comprehensive framework identifies four major categories of supply chain performance measures: relational; operational; strategic; and economic – hence the name ROSE.Originality/value– This comprehensive framework identifies four types of supply chain measures that can be used as a guiding framework by both academics and practitioners. The paper also offers directions for future work in the form of propositions.

Supply chain performance measurement and improvement is required to control the performance and define a strategy to improve agroindustry’s competitiveness. The objectives of the research were to identify supply chain configuration and mechanism, and to analyze the supply chain performance and define the supply chain performance improvement for palm oil agroindustry. The research was conducted at Riau Province and Jambi Province as the central palm oil production in Indonesia. The Supply Chain Operation Reference (SCOR) and Analytical Hierarchy Process (AHP) were applied to analyze the supply chain performance and the performance improvement strategies were formulated descriptively with expert discussion. The results showed that the average performance of farmers, traders and refinery at Riau Province were 77.77%, 74.60% and 79.20%. The average performance of farmers, traders and refinery at Riau Province were 72.66%, 75.39% and 83.11%. This research had succeeded to define the strategies to improve palm oil supply chains at Riau Province and Jambi Province. The strategies were focused on good agricultural and good handling practice, specifying the palm oil prices refractions based on quality and implementing the information system to improve the supply chain performance.