Developing a framework for supply chain value measurement based on value index system: Real case study of manufacturing company

Abstract

Due to the fierce competition among supply chains in today's market, creating more value for stakeholders (that is, customers, community. Shareholders, employees and suppliers) determines competitive advantage of a firm over its competitors. Since the satisfaction of all of the stakeholders affect the supply chain total value, every single stakeholder must be engaged in the value measurement process. This study strived to propose an index system with a holistic view considering all stakeholders, since the literature lacks a study offering a set of indices covering all stakeholders. Therefore, firstly a technical review of the articles related to supply chain performance measurement which focused on value has been conducted. Afterwards each index has been classified by expert managers in five categories, with respect to its direct influence on every group of stakeholders. Finally, we have developed a framework for measurement of value in supply chain by using an actual value index system gathered by observation and in-depth interviews with all supply chain stakeholders in a manufacturing company. Application of the proposed framework as a decision support system helps managers to perform gap analysis between value creation level for their stakeholders and the desired one and also provides reliable information for decision making.