Mr Ahmed Draz
ARTICLE IN PRESS
Int. J. Production Economics 87 (2004) 333–347
A framework for supply chain performance measurement
A. Gunasekarana,*, C. Patelb, Ronald E. McGaugheyc a Department of Business Administration, University of Illinois at Springfield, One University Plaza, Springfield, IL 62703-5407, USA b Ace InfoTech, Inc., 406 Wellington Drive, Streamwood, IL 60107, USA c Department of Management Information Systems, The University of Central Arkansas, Conway, AR 72035-0001, USA
Abstract Supply chain management (SCM) has been a major component of competitive strategy to enhance organizational productivity and profitability. The literature on SCM that deals with strategies and technologies for effectively managing a supply chain is quite vast. In recent years, organizational performance measurement and metrics have received much attention from researchers and practitioners. The role of these measures and metrics in the success of an organization cannot be overstated because they affect strategic, tactical and operational planning and control. Performance measurement and metrics have an important role to play in setting objectives, evaluating performance, and determining future courses of actions. Performance measurement and metrics pertaining to SCM have not received adequate attention from researchers or practitioners. We developed a framework to promote a better understanding of the importance of SCM performance measurement and metrics. Using the current literature and the results of an empirical study of selected British companies, we developed the framework presented herein, in hopes that it would stimulate more interest in this important area. r 2003 Elsevier B.V. All rights reserved.
Keywords: Supply chain; Performance measurements; Metrics; Empirical analysis; Framework
1. Introduction By the late 1980s, outsourcing in US industries contributed to nearly 60% of the total product cost (Ballou, 1992). In the UK, a survey showed that 40% of the
Int. J. Production Economics 87 (2004) 333–347
A framework for supply chain performance measurement
A. Gunasekarana,*, C. Patelb, Ronald E. McGaugheyc a Department of Business Administration, University of Illinois at Springfield, One University Plaza, Springfield, IL 62703-5407, USA b Ace InfoTech, Inc., 406 Wellington Drive, Streamwood, IL 60107, USA c Department of Management Information Systems, The University of Central Arkansas, Conway, AR 72035-0001, USA
Abstract Supply chain management (SCM) has been a major component of competitive strategy to enhance organizational productivity and profitability. The literature on SCM that deals with strategies and technologies for effectively managing a supply chain is quite vast. In recent years, organizational performance measurement and metrics have received much attention from researchers and practitioners. The role of these measures and metrics in the success of an organization cannot be overstated because they affect strategic, tactical and operational planning and control. Performance measurement and metrics have an important role to play in setting objectives, evaluating performance, and determining future courses of actions. Performance measurement and metrics pertaining to SCM have not received adequate attention from researchers or practitioners. We developed a framework to promote a better understanding of the importance of SCM performance measurement and metrics. Using the current literature and the results of an empirical study of selected British companies, we developed the framework presented herein, in hopes that it would stimulate more interest in this important area. r 2003 Elsevier B.V. All rights reserved.
Keywords: Supply chain; Performance measurements; Metrics; Empirical analysis; Framework
1. Introduction By the late 1980s, outsourcing in US industries contributed to nearly 60% of the total product cost (Ballou, 1992). In the UK, a survey showed that 40% of the
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