Measurement of supply chain integration benefits

Abstract

The paper deals with business renovation, effective utilization of information technology and the role of business process modeling in supply chain integration projects. The main idea is to show how the performance of the supply chain can be improved with the integration of various tiers in the chain. Integration is prerequisite for effective sharing and utilization of information between different companies in the chain. Simulation-based methodology for measuring the benefits combines the simulation of business processes with the simulation of supply and demand. The theoretical findings are illustrated with the case study of procurement process in a petrol company. Old and renewed business process models are shown. The changes in lead-times, process execution costs, quality of the process and inventory costs are estimated.