Supply chain performance measurement framework for small and medium scale enterprises

Abstract

Purpose The purpose of this paper is to propose an integrated supply chain performance measurement framework for the case of small and medium scale enterprises (SMEs) using set of qualitative and quantitative insights gained during the case study research. Design/methodology/approach This paper develops the supply chain performance measurement framework using the facts revealed through case study analysis, secondary data specific to various SME clusters in India and detailed contemporary studies reported on supply chain management in SMEs. It integrates the salient features of balanced scorecard (BSC) and supply chain operation reference (SCOR) model to deliver a comprehensive performance measurement framework for SMEs. Findings This paper reports set of performance indicators for the supply chain processes like “source,” “make,” and “deliver” in SMEs. It also relates the measures with various supply chain cycles like “procurement,” “manufacturing,” “replenishment,” and “customer order.” As a result, paper delivers an integrated performance measurement framework for supply chain evaluation and planning in SMEs. It also outlines the detailed guideline for the implementation and use of the framework. Practical implications This paper is expected that the developed framework: will help SME managers to improve the visibility of their supply chain amongst interacting partners; and will help SME firms to explain the basis of their decisions to the other supply chain partners and specifically, origingal equipment manufacturer organizations where less bargaining power exist. Originality/value This paper integrates the spirit of two well‐known contributions in the field of performance measurement namely BSC and SCOR. The proposed framework is deduced using the findings of real life case study research and hence establishes an adequate platform for its application. It would help the managers or decision makers in SMEs to gain a systematic insight into their supply chain problems and hence undertake the necessary improvements.

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