Multi-dimensional performance measurement in complex networks – model and integration for logistics chain management

Abstract

Global demands and emerging markets resulted in a rise of complexity in logistics over the last years. Furthermore, producing companies outsourced their logistics for reasons of flexibility. Hence, clients consult solution specialists for customer-focused end-to-end processes. The 4th party logistics business model offers an overall service management throughout an entire logistics chain by planning and controlling inherent processes. But because physical provisioning is outsourced to 3rd party providers, performance measurement is essential in order to meet service levels. Measuring sub providers poses difficulties because of different process definitions and communication standards. A relief is the growing amount of information during the process lifecycle. In this paper we present an integrated, strategically aligned provider rating model, applicable throughout the entire logistics process and capable of summing up operational information into ratios that are further aggregated into key performance indicators. Thereafter, we prove its applicability through a prototypical implementation.