Performance measures and metrics in a supply chain environment

• Published in: International journal of operations & production management Vol. 21; no. 1/2; pp. 71 - 87
• Main Authors: Gunasekaran, A, Patel, C, Tirtiroglu, E
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 01.01.2001; MCB UP Ltd
• Subjects: Business metrics; Competitive advantage; Customer satisfaction; Customer services; Electronic data interchange; Inventory; Management science & operations; Operations/process management; Order entry; Performance evaluation; Performance measurement; Planning; Suppliers; Supply chain management; Supply chains; Supplychain management; Performance measurement; Customer satisfaction; Supply-chain management
• ISSN: 0144-3577; 1758-6593
• DOI: 10.1108/01443570110358468

In todays world, supply chain management SCM is a key strategic factor for increasing organizational effectiveness and for better realization of organizational goals such as enhanced competitiveness, better customer care and increased profitability. The era of both globalization of markets and outsourcing has begun, and many companies select supply chain and logistics to manage their operations. Most of these companies realize that, in order to evolve an efficient and effective supply chain, SCM needs to be assessed for its performance. Based on a literature survey, an attempt has been made in this paper to develop a framework for measuring the strategic, tactical and operational level performance in a supply chain. In addition, a list of key performance metrics is presented. The emphasis is on performance measures dealing with suppliers, delivery performance, customerservice, and inventory and logistics costs in a SCM. In developing the metrics, an effort has been made to align and relate them to customer satisfaction.