Performance measurement and metrics in supply chains: an exploratory study

Wojciech Piotrowicz · Richard W. Cuthbertson

69 citations0/0 files storedInternational Journal of Productivity and Performance Management

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Quality and Supply Management Accounting and Organizational Management Sustainable Supply Chain Management

Abstract

Purpose – The purpose of this paper is to explore the approaches and metrics used to measure supply chain (SC) performance, and to understand the relative perceived importance of such measures. Design/methodology/approach – This research is based on empirical data captured through a survey of SC professionals in a variety of business sectors. Findings – The research confirms the importance of the balanced scorecard (BSC) approach, with BSC, SCOR and economic value added being the most commonly used tools. Economic metrics dominate, focused on cost and customer service. While social and environmental-related measures are of emerging importance, they appear to be of similar importance to economic metrics only when backed up by a legal obligation. Research limitations/implications – The small sample of 51 companies was based on access and the group is not wholly representative of all businesses. Respondents were mainly managers from EU countries involved in procurement, logistics and transport activities. Surveyed companies included manufacturing, automotive, retail, logistics services and wholesaling businesses. Practical implications – The common key performance indicators (KPI’s) are identified. These include measures related to: quality, efficiency, responsiveness, health and safety, employees, emission, natural resources utilisation, waste and recycling. Issues that influence the usage of measurement systems as well as the company and SC levels are ranked. Social implications – Implementation of a monitoring system and subsequent usage of the collected data may help to reduce negative external impacts on society and the environment. Originality/value – The field of SC performance management is still developing, with growing empirical work. Nevertheless this paper is one of the first attempts to carry out such an analysis focused on metrics and their usage. The survey instrument has been tested and can now be applied to other contexts.

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References

1992The balanced scorecard : measures that drive performance 1997The balanced scorecard: Translating strategy into action 1992The balanced scorecard--measures that drive performance.2008From a literature review to a conceptual framework for sustainable supply chain management 1995Performance measurement system design 1999Measuring supply chain performance 2003A framework for supply chain performance measurement 1998Putting the Balanced Scorecard to Work

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2019Evaluation of sustainable supply chain management performance: Indicators 2018Achieving sustainability through the lean and resilient management of the supply chain 2019Evaluation of sustainable supply chain management performance: Dimensions and aspects 2019Drivers and barriers for implementation and improvement of Sustainable Supply Chain Management 2019Key characteristics for designing a supply chain performance measurement system 2024

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