Logistics and Supply Chain Management Performance Measures

Abstract

Performance measures are a set of metrics used to quantify the efficiency and/or effectiveness of an organizational action and are especially important in a supply chain management context where such measures are typically quantitative and relate to reducing overall costs and the time taken to implement an action. Performance measurement in the logistics and supply chain domain is difficult, due to multiple tiers and the number of organizations involved. Organizations should first determine which measures are appropriate to meet their strategic objectives and guidance is provided on criteria for measure selection. Organizations then need to select an appropriate performance measurement system or framework to operationalize the selected measures in concert with any certification or accreditation schemes for their particular sector. Finally, two special cases are presented, sustainable or environmental and humanitarian logistics and supply chain management, to illustrate potential applications of the Plan-Do-Study-Act Cycle and the Balanced Scorecard, respectively.