A Proposed Performance-Measurement System for Enabling Supply-Chain Strategies

Abstract

Existing performance-measurement systems in the supply-chain literature have been designed for specific supply chains. Without a business-appropriate performance-measurement system, practitioners devise strategies that are neither scientific nor supported by data. The objective of this paper was to propose a performance-measurement system to support the enabling of supply-chain strategies. The proposed performance-measurement system (PMS), combining the Plan–Do–Check–Act cycle (PDCA) with the evidence-based management (EBM) concept, served as the basis for developing a procedural framework. The PMS was validated using the case logistics service providers (LSPs). The PDCA methodology was used to develop a structural framework for fourth-party logistics (4PL). In the Plan step, the research team identified the business problems of fourth-party logistics (4PL). In the Do step, the LSP literature was reviewed, to identify five performance dimensions (‘Service Quality’; ‘Social and Environmental’; ‘Inter-organizational Relationship’; ‘Financial’; and ‘Efficiency and Effectiveness’), and key performance indicators (KPIs). The 4PL management team participated in the finalization of the five performance dimensions and the 53 KPIs, which were used to propose a preliminary version of the structural framework for the 4PL. In the Check step, the data collected from 478 subcontractors of the 4PL were analyzed, using confirmatory factor analysis and structural equation modeling, and were used to validate the proposed structural framework for the 4PL. The validated structural framework was further presented at an academic conference, and to the 4PL for feedback, and was used to formulate supply-chain strategies through brainstorming. The findings include a validated structural framework containing five performance dimensions and 32 KPIs. The research revealed that input performance (‘Service Quality’, ‘Social and Environmental’, and ‘Inter-organizational Relationship’) positively affected output performance (‘Financial’ and ‘Efficiency and Effectiveness’). Supply-chain strategies were further suggested to the 4PL. The validating case in this study demonstrated that the employed procedural framework (PDCA and EBM) was applicable, and could be used to derive a structural framework and supply-chain strategies for the 4PL. This study contributes to the literature, by proposing a PMS for supply-chain strategy development. The paper’s illustrative case provides a practical application of how to develop a performance-measurement system.

Evaluating Performance Measurement Metrics for Lean and Agile Supply Chain Strategies in Large Enterprises

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Application of Supply Chain Strategies to Improve the Performance of Syngas Networks

“…Performance measurement provides insights into the effectiveness of supply chain strategies, identifies areas for improvement, and enables benchmarking against industry standards [64]. Continuous monitoring and analysis of performance metrics enable proactive decision-making and the identification of opportunities for further optimization [65]. Additionally, establishing a continuous improvement and innovation culture is essential for driving performance in syngas networks [62].…”

Estrategia lúdica de aprendizaje para el control de sistemas de producción desde un enfoque Lean: El uso del sistema de tarjetas Kanban

“…La propuesta inicialmente planteada fue simulada con estudiantes del programa de ingeniería industrial de la universidad objeto de estudio, en la cual se logran encontrar elementos de mejora que fueron incluidos en la etapa de diseño de la lúdica. Es necesario tener en cuenta que para esta etapa se basó en el ciclo PHVA, el cual es una metodología científica con un procedimiento estandarizado que permite la mejora continua (Varadejsatitwong et al, 2022)…”