Value-based performance measurement in supply chains: a case study from the packaging industry

Hofmann, Erik; Locker, Alwin

doi:10.1080/09537280802685272

Cited by 74 publications

(57 citation statements)

References 35 publications

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“…These old types of goals do not suffice in the time of globalization. (Hofmann and Locker, 2009) They are outdated and companies are not using them anymore. Companies need goals that would be appropriate for this ever-changing era full of competition.…”

Section: Introductionmentioning

confidence: 99%

Factors affecting the receivables turnover

Kozhina¹

2017

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Section: Introductionmentioning

confidence: 99%

Factors affecting the receivables turnover

Kozhina¹

2017

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“…In a case study, the authors showed that the integration model provides a better solution in terms of change in equity than the sequential approach that follows the hierarchical decision-making process. Hofmann and Locker [23] argued that the link between SCM and company value needs to be strengthened, since activities of the SC manager have a direct impact on stakeholders. Badri et al [24] designed a scenario-based stochastic optimization model to maximize the value of the company by maximizing EVA.…”

Section: Introductionmentioning

confidence: 99%

A Linkage Model of Supply Chain Operation and Financial Performance for Economic Sustainability of Firm

2017

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Abstract:Although several studies have explored the relationship between the operation and performance of a supply chain (SC), a general SC model cannot deliver the expected financial results at a company-wide level. In this paper, we argue that this cannot guarantee the maximization of a firm's overall value because short-term financial performance metrics do not reflect the risk to businesses and the invested capital. Owing to the varying natures of risk and the capital invested, firms with multiple divisions should assess each division separately, and the results can be compared for decisions concerning the allocation of the firm's capital and resources to maximize the overall value of its businesses. We propose a linkage model to consider operational activities and financial performance simultaneously in a firm's supply chain model. To exhibit the superiority of the proposed model that connects SC operation and financial indicators, we first compare the differences between models for maximizing profit and enterprise-wise economic value added (EVA) as objective functions. To examine uncertainty in the operational and financial parameters of the SC, the results of sensitivity analyses are then reported. Experimental results showed that our model, using the EVA approach, is more effective and superior in terms of maximizing the firm's overall value from the long-term perspective while satisfying the target values for financial ratios set by the firm's executives and shareholders for all periods, unlike the results of the general model.

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“…To implement a comprehensive calculation, differentiated functions for investments, operating costs and capital costs have to be formulated and opposed to the fuzzy model. For instance, the results of such an analysis can be transferred to the Economic Value Added, EVA (Hofmann and Locker 2009). …”

Section: Resultsmentioning

confidence: 99%

“…In the recent past, researchers increasingly focused on the financial performance of SCM including costs, revenues and working capital (e.g. Hofmann and Locker 2009;Lambert and Burduroglu 2000;Pohlen and Coleman 2005). They state that there is a link between SCM, logistics customer service (LCS) and revenues.…”

Section: Introductionmentioning

confidence: 99%

Determining the revenue contribution of logistics customer service improvements: a multi criteria decision making approach

Wessely¹,

Hofmann

2014

Decis. Anal.

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In operations and service management generating revenues is as important as reducing costs. Although logistics customer service is an important measure for executives, little research has been conducted to quantify the extent to which improvements of service levels contribute to a company's revenues. The paper applies existing fuzzy-based methods to monetarily determine the revenue contribution of logistics customer service. A logistics customer service-revenue curve and its influencing parameters are derived to obtain a quantitative relation. The method of the analytical hierarchy process is evolved dynamically by involving competitors and customer reactions. A case study from the consumer goods industry illustrates the main findings.

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Value-based performance measurement in supply chains: a case study from the packaging industry

Cited by 74 publications

References 35 publications

Factors affecting the receivables turnover

Factors affecting the receivables turnover

A Linkage Model of Supply Chain Operation and Financial Performance for Economic Sustainability of Firm

Determining the revenue contribution of logistics customer service improvements: a multi criteria decision making approach

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