Supply Chain Performance Measurement Model: A Literature Review

Supply chain is being envisaged as an extended enterprise connecting business in different places and facilitating allies to propel competitive advantage in the era of globalization. Substantial research has been undertaken along with literatures on supply chain performance management from cost and non-cost standpoint, strategic, tactical or emphasis on operational aspects; perspectives from commercial as well as financial arenas. In order to gratify customer orders rapidly and efficiently than competitors, supply chain needs to warrant continuous upgradation of its processes and competitive strategies and to apprehend how supply chain contests? it is indispensable to realize the overall performance of the supply chain. However, still many companies miscarry to acquire effective performance measurement tools and techniques to attain integrated Supply Chain Management (SCM). The rationale of this paper is to evaluate the literature on performance measurement for supply chain to apprehend current practices, recognize gaps and advocate future research itineraries. The paper also offers a synopsis and appraisal of the performance measurement used through different supply chain models

Alignment of balanced scorecard perspectives with supply chain management objectives: a literature review

Having in view the fast diffusion of the Balanced Scorecard since its development in the 1990s, as well as your application in various industrial sectors, this paper aims to present a literature review on the alignment of this performance measurement system with the Supply Chain Management. This research was motivated by the finding of an increase in the annual number of papers published over the years. Through a literature review 43 papers related to the theme were localized in databases SCIELO, SCOPUS and Web of Science. Key metrics, methodological procedures most used for developing the papers localized, benefits and limitations of using the system, as well as research gaps indicated for future works are presented. The main contribution of this research focuses on condense into a single material, an overview of the assessment methods of Supply Chain Management based on the Balanced Scorecard perspectives. Several metrics have been proposed for the development of this performance measurement system, encompassing other perspectives beyond the four traditional BSC perspectives

Supply chain management as the company engine in automotive manufacturing

©2013 International Federation of Automatic Control (IFAC). Originally published in IFAC-PapersOnLine (www.ifac-papersonline.net)The objective of this paper is to define how to create a supply chain management (SCM) organizational structure with roles and responsibilities in a multinational company with a big part of the supply chain inside of the company. SCM means having under control the complete supply chain to decide the global optimal instead of summing up the optimal of each node independently. We propose, based on the systems thinking concept, how to develop an organizational structure where the SCM acts as the engine of the organization. There must be a strategy to create this structure starting from the bottom to the top of an organization. An illustration example is given in a first tier supplier of an automotive supply chain. © IFAC.Ferriols Martínez, FJ.; Mula, J.; Díaz-Madroñero Boluda, FM. (2013). Supply chain management as the company engine in automotive manufacturing. Ifac Papers Online. 7(1):682-687. doi:10.3182/20130619-3-RU-3018.00614S6826877

Key characteristics for designing a supply chain performance measurement system

Purpose The purpose of this paper is to conduct a review of the literature that gives insight into design elements for constructing a supply chain performance measurement (SCPM) system. Design/methodology/approach A systematic review of published research on SCPM systems and frameworks over the last two decades was conducted with the purpose of categorising key functions of SCPM systems by providing an insight into the design, functionality, implementation and practical implications of SCPM systems. Findings The review revealed a set of functions governing the SCPM system that have not been fully explored in previous research: the process focus, prioritisation, integration and causality functions of a SCPM system. A relationship between two or more functions can be created to include more functionality based on the needs of the company to create a comprehensive performance measurement system. Research limitations/implications The paper concludes with a conceptual framework to guide future research in the area of designing a SCPM system and define the main aspects that should be considered when developing a SCPM system. Practical implications The paper brings a new dimension to the SCPM research by identifying the main functions of SCPM systems that could benefit practitioners to set up a SCPM system relevant to its intended function. The paper presents multiple potential stages of merging different functions in one SCPM system. Based on the company’s needs and context, the functionality of the SCPM system can be designed at four levels creating ten possible scenarios when designing a company’s SCPM system. Originality/value The paper integrated the literature and findings of 269 research papers of the last two decades, upon which a conceptual framework was developed as a guide for constructing an effective SCPM system

ANALISIS KINERJA, NILAI TAMBAH DAN MITIGASI RISIKO RANTAI PASOK AGROINDUSTRI BAWANG MERAH

The supply chain of shallot agroindustry is in urgent situation owing to theimbalance risk and added-value distribution of the actors in the supply chain. The purposes of this research were (1) to identify the mechanism and performance of shallot supply chain; (2) to measure the added-value of supply chain actors; (3) to identify and mitigate the risk in shallot supply chain; and (4) to select the strategy to improve the performances, added-value, and risk mitigation ofshallot supply chain. Supply Chain Operations Reference-Analytical Hierarchy Process (SCOR-AHP)wereemployed to measure the performance of shallot supply chain.Hayami method was used to analyze the added-value.House of Risk (HOR)was used to identify and mitigate the risk, while the strategies for the improvements were formulated using Analytic Network Process-Benefit Opportunity Cost Risk analysis (ANP-BOCR) method. Analysis on the supply chain performance showed those classified as below average were farmer (75.38%), first collector (74.43%), and industry (74.79%), whereasthe second collector hadagood performance (91.97%). Added-value ratios were for the industry of 53.75%, farmer of 46.06%, first collector of 8.88%, and second collector of 5.39%.Total effectivity measurement of risk mitigation to prioritized risk agent resulted the farmer had11 preventive actions,the collectors had9 and the industry had8. The supply chain evaluation resulted in four alternatives for the improvement strategy of the performance, added-value and risk mitigation.The best alternative with the highest BO/CR ratio was the implementation of the SOP of proper cultivation and post-harvesting method.Keywords: shallot agroindustry, risk mitigation, supply chain, value adde

ANALISIS KINERJA, NILAI TAMBAH DAN MITIGASI RISIKO RANTAI PASOK AGROINDUSTRI BAWANG MERAH

The supply chain of shallot agroindustry is in urgent situation owing to theimbalance risk and added-value distribution of the actors in the supply chain. The purposes of this research were (1) to identify the mechanism and performance of shallot supply chain; (2) to measure the added-value of supply chain actors; (3) to identify and mitigate the risk in shallot supply chain; and (4) to select the strategy to improve the performances, added-value, and risk mitigation ofshallot supply chain. Supply Chain Operations Reference-Analytical Hierarchy Process (SCOR-AHP)wereemployed to measure the performance of shallot supply chain.Hayami method was used to analyze the added-value.House of Risk (HOR)was used to identify and mitigate the risk, while the strategies for the improvements were formulated using Analytic Network Process-Benefit Opportunity Cost Risk analysis (ANP-BOCR) method. Analysis on the supply chain performance showed those classified as below average were farmer (75.38%), first collector (74.43%), and industry (74.79%), whereasthe second collector hadagood performance (91.97%). Added-value ratios were for the industry of 53.75%, farmer of 46.06%, first collector of 8.88%, and second collector of 5.39%.Total effectivity measurement of risk mitigation to prioritized risk agent resulted the farmer had11 preventive actions,the collectors had9 and the industry had8. The supply chain evaluation resulted in four alternatives for the improvement strategy of the performance, added-value and risk mitigation.The best alternative with the highest BO/CR ratio was the implementation of the SOP of proper cultivation and post-harvesting method

Feasibility of the chosen inventory management model in a manufacturing company : A case study

Globalization has led to increased business uncertainties and disruptions. For example, COVID-19 challenged most supply chains by affecting stocking and inventory flow management. As a result, the importance of inventory management has increased, as inventories act as a protection against uncertainties. On the other hand, they also tie a lot of capital. Consequently, many organizations have implemented an information system to ensure efficient inventory management. However, many companies have difficulties synchronizing their visions and strategy as part of their inventory management decisions. This research focuses on the feasibility of the chosen inventory management model in a manufacturing company. The aim of this research is to interpret the chosen inventory management model and determine to what extent it fits the case organization´s inventory management strategy and reflects the operating environment´s needs. In addition, the study aims to identify how the SCM system X´s inventory management model affects the case company´s operations. To meet this twofold research aim, a literature review of relevant literature was carried out and practical research was implemented. The latter was conducted using a qualitative case study as a method. The research data was collected with semi-structured interviews by interviewing a total of five interviewees from the case company and the SCM system X´s reseller organization. The data was analyzed with theory-guided content analysis, and finally, the results were structured using the feasibility framework created on the basis of the literature review. The framework outlined the relationship between the three strategic levels of the company´s inventory management and the SCM system´s decision support system, but also described the impact of the information technology use on organizational processes. The findings underline that the SCM system X and its inventory management model are in line with the strategic and tactical levels of the case company, as their main target is to increase availability and reduce inventories. However, from the availability point of view, the minimum service level must be separately set for the most strategically important customers so that the optimization of the inventory management model supports the case company´s strategy. At the operational level, the case company´s ERP was relatively compatible with the SCM system, whereas the optimization logic of the inventory management model raised the need for the case company to identify its strategically important products and set a minimum service level for them. In addition, based on the results, the ABC classification used by the case organization was advised to abandon. However, if the classification is needed, it was suggested to follow a multi-criteria approach instead of a single criterion in order to better identify strategically important products. The main conclusion drawn from this study is that the chosen inventory management model mainly fits the case company´s inventory management strategy but requires some changes to the case company´s processes to achieve more benefits of the SCM system X. In addition, the implementation of the system has had both direct and indirect impacts on the organization's business, most of which are positive.Globalisaatio on johtanut liiketoiminnan epävarmuuksien ja häiriöiden lisääntymiseen. Esimerkiksi COVID-19 haastoi useimmat toimitusketjut vaikuttaen varastoinnin ja varastojen virtojen hallintaan. Tämän seurauksena varastonhallinnan merkitys on kasvanut, sillä varastot toimivat suojana epävarmuuksia vastaan. Toisaalta koska varastot sitovat myös paljon pääomaa, monet organisaatiot ovat ottaneet käyttöönsä tietojärjestelmän varmistaakseen tehokkaan varastonhallinnan. Monilla organisaatioilla on kuitenkin ollut vaikeuksia yhdistää visionsa ja strategiansa osaksi varastonhallinnan päätöksiään. Tämä tutkimus keskittyy valitun varastonhallintamallin toteutettavuuteen valmistavassa yrityksessä. Tutkimuksen tarkoituksena on tulkita valittua varastonhallintamallia ja määritellä miltä osin se sopii case-yrityksen varastonhallintastrategiaan ja heijastaa sen toimintaympäristön tarpeita. Lisäksi tutkimus pyrkii tunnistamaan, miten toimitusketjujärjestelmä X:n varastonhallintamalli vaikuttaa case-yrityksen operaatioihin. Tutkimustavoitteiden saavuttamiseksi tehtiin kirjallisuuskatsaus sekä toteutettiin tutkimuksen empiirinen osuus. Tutkimusmetodina käytettiin laadullista case-tutkimusta. Tutkimusaineisto kerättiin puolistrukturoiduilla haastatteluilla haastattelemalla yhteensä viittä haastateltavaa case-yrityksestä ja toimitusketjujärjestelmä X:n jälleenmyyjäorganisaatiosta. Aineisto analysoitiin teoriaohjaavaa sisällönanalyysiä käyttämällä, ja lopulta tulokset jäsenneltiin toteutettavuusviitekehyksen avulla, joka luotiin kirjallisuuskatsaukseen pohjalta. Viitekehyksessä hahmoteltiin organisaation varastonhallinnan kolmen strategisen tason suhdetta toimitusketjujärjestelmän päätöksenteon tukijärjestelmään sekä kuvailtiin tietotekniikan käytön vaikutuksia organisatorisiin prosesseihin. Tutkimustulokset osoittavat, että toimitusketjujärjestelmä X ja sen varastonhallintamalli ovat linjassa case-organisaation strategisen ja taktisen tason tavoitteiden kanssa, sillä molempien päätavoitteina on lisätä saatavuutta sekä vähentää varastoja. Saatavuuden näkökulmasta minimipalvelutaso tulisi kuitenkin asettaa erikseen strategisesti tärkeimmille asiakkuuksille, jotta varastonhallintamallin optimointi toimii case-yrityksen strategiaa tukien. Vastaavasti operatiivisella tasolla case-yrityksen ERP-järjestelmä nähtiin jokseenkin yhteensopivana toimitusketjujärjestelmän kanssa, kun taas varastonhallintamallin optimointilogiikan myötä esiin nousi tarve tunnistaa strategisesti tärkeät tuotteet ja minimipalvelutasojen asettaminen niille. Lisäksi tulosten pohjalta case-yrityksen ABC-luokittelusta ehdotettiin luovuttavan. Mikäli luokittelusta ei kuitenkaan haluta luopua kokonaan, ehdotettiin ottamaan käyttöön monikriteerinen menetelmä yksikriteerisen menetelmän sijaan, jotta strategisesti tärkeät tuotteet saataisiin paremmin tunnistettua. Tutkimuksen johtopäätöksinä voidaan todeta, että valittu varastonhallintamalli on linjassa pääosin case-yrityksen strategian kanssa, mutta vaatii kuitenkin joitakin muutoksia case-yrityksen prosesseihin. Lisäksi toimitusketjujärjestelmän käyttöönotolla on ollut sekä suoria että epäsuoria vaikutuksia case-yrityksen liiketoimintaprosesseihin, joista suurin osa on ollut positiivisia