Performance management in the value chain

Abstract

Performance management in the value chain is a critical task for companies confronted with increasingly complex global value chain networks. Managing global material flow and shipments between continents, tracking prices and volumes in global customer and supplier markets, and ensuring reliable and timely delivery of orders are only a few issues that can benefit from professional value chain management concepts. Performance management, one management concept in the value chain, includes strategic, tactical and operative concepts to measure and monitor as well as ensure performance and stability in the value chain. Value chain performance should be tracked regularly and measured transparently, and exceptions and unplanned events should be proactively identified and managed. The objective of this article is to provide a practice-oriented view of performance management in the value chain as well as current frameworks and industry case examples. © 2008 Springer-Verlag Berlin Heidelberg.