Modelling the measures of supply chain performance in the Indian automotive industry

Abstract

Purpose – The purpose of this paper is to investigate the interactions among the key factors of supply chain (SC) in the Indian automotive industry. These key factors are helpful to measure supply chain performance (SCP) and to improve the firm’s effectiveness. Design/methodology/approach – In this paper, an interpretive structural modeling with a fuzzy cross-impact matrix multiplication applied to classification-based approach is used to examine the interactions among the key factors of SCP measurement. Findings – The authors have identified the most dominant key factors used for measuring the performance in automotive SC. The results exhibit that the order lead-time and order entry method are the most significant key factors. These key factors have high driving power to measure SCP whereas the post-transaction measure of customer service and customer query time are highly dependent on other factors. Such relationships among the key factors can help a firm’s top management to make essential judgments in order to solve the overall SC problems and provide a better approach to proactively deal with problems. Originality/value – In this paper, the authors have explored the interactions among the key factors of the SCP in the Indian automotive industry.

Supply chain resilience and key performance indicators: a systematic literature review

“…Thus, monitoring this KPI can help predict future disruptions by observing the delay and promptly searching for the causes. Additionally, knowing that the result of this KPI influences the level of customer service (Katiyar et al, 2015), monitoring it can verify if customers feel secure and if they are satisfied, or if there is a need to develop practices to enhance security. Ali et al (2017) point out some security practices, such as security culture, cyber-security, layered defenses, creating public-private partnerships (PPP) and cooperative strategies with supply chain partners.…”

“…Although all the identified KPIs can help build and enhance knowledge management by understanding the organization's environment, few KPIs presented a clear co-occurence in the literature with this element. Capacity utilization is a common non-financial KPI and plays an important role in determining the performance level in a supply chain by observing how well the capacity is used in the delivery of services (Katiyar et al, 2015). According to Cho et al (2012), by understanding the capacity utilization throughout the months, it is possible to schedule better and use the resources to increase the efficiency of operations, and consequently reduce the product's final price with a view to increasing the market share.…”

“…By doing this, they keep up to date with the impacts, consequences and supply chain partners' actions (Gunasekaran et al, 2001;Cho et al, 2012). Fast service and responding properly to customers' queries are crucial for keeping customers satisfied (Katiyar et al, 2015), and hence develop SCRes.…”

“…Hence supplier delivery efficiency is a KPI that should be monitored daily, especially during the disruption time when the rate of this indicator normally drops. Damage return rate, as well as supplier rejection rate are additional KPIs that require collaboration between supply chain partners in order to reduce problems and improve its operational results for all of them (Katiyar et al, 2015).…”

“…In other words, it decreases the lead time from end to end of the pipeline and increases customer satisfaction (Morini et al, 2015). This is also true for delivery lead time (Katiyar et al, 2015). Thus, measuring these KPIs can help managers act during disruption, and consequently in creating SCRes.…”