Measuring Supply Chain Performance

Benita Beamon

International Journal of Operations and Production Management

1999, Vol. 19, No. 3, pp. 275-292

 

1)      Introduction

  1. a) Supply chain measurement must include qualitative and quantitative assessment
  2. b) Integrated process- must include the entire supply chain

2)      Performance Based systems

  1. a) Characteristics of Performance Based systems
  2. i) Inclusiveness
  3. ii) Universality

iii)     Measurability

  1. iv) Consistence
  2. v) Benchmarking
  3. b) Different types of systems require specific measurements

3)      Supply chain performance measures

  1. a) 2 basic measures
  2. i) cost
  3. ii) customer responsiveness

(1)   customers satisfaction

(2)   Information flow

(3)   Supplier performance

(4)   Risk management

  1. b) Single measures
  2. i) Lack inclusiveness
  3. ii) Too simplistic
  4. c) Recommendations
  5. i) Measures must consider all aspects of the supply chain
  6. ii) Measures must relate to the company’s strategic goals

iii)     Measures should consider uncertainty in order to achieve adaptability

4)      New framework

  1. a) Select a mix of measures from
  2. i) Resource measures

(1)   Inventory levels

(2)   Personnel requirements

  1. ii) Output measures

(1)   Customer responsiveness

(2)   Quality

(3)   Quantity produced

iii)     Flexibility measures

(1)   Range and response

(2)   Ease of change

(3)   Volume flexibility

(4)   Delivery flexibility

(5)   Mix flexibility

 

Key points

  1. Measurement must be all inclusive and include measurement based on a mix of areas
  2. Measurement must coincide with the strategic goals of companies within the supply chain
  3. It is important to recognize the interactions between supply chain measurements and between supply chain members in order to select a system that is successful for the entire system.