A framework for supply chain performance measurement

Abstract

Supply chain management (SCM) has been a major component of competitive strategy to enhance organizational productivity and profitability. The literature on SCM that deals with strategies and technologies for effectively managing a supply chain is quite vast. In recent years, organizational performance measurement and metrics have received much attention from researchers and practitioners. The role of these measures and metrics in the success of an organization cannot be overstated because they affect strategic, tactical and operational planning and control. Performance measurement and metrics have an important role to play in setting objectives, evaluating performance, and determining future courses of actions. Performance measurement and metrics pertaining to SCM have not received adequate attention from researchers or practitioners. We developed a framework to promote a better understanding of the importance of SCM performance measurement and metrics. 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. © 2003 Elsevier B.V. All rights reserved.