Supply chain performance measurement systems: Benefits and drawbacks

Abstract

In today"s fickle market environment, Supply chain management is a primordial cornerstone for Business to improve a sustainable competitive advantage and to remain within the vanguard of the worldwide competitive market through enhancing organizational effectiveness and higher reaching strategic business goals such as enhanced competitiveness, extended profitability, ensured financial sustainability and improved customer retention.Due to this fact, Supply chain performance measurement plays a vital role in effective supply chain management.Over the past decades, various frameworks and systems have been proposed and developed to study the lack of research on this topic by reviewing the current literature of models and tools in the field of supply chain performance measurement for the last two decades.The paper provides a comprehensive overview of SCPMS and emphasizes the drawbacks highlighted in existing SCPMS to improve supply chain visibility.Findings show the inability of existing SCPMS such as BSC to provide fast decision making and highlight the under-performed criteria as well as the disability to evaluate overall SC performance.Lastly, this study suggests some steps to help decision-makers to evaluate overall SC performance from all angles.

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