...Journal of Production Research Vol. 48, No. 17, 1 September 2010, 5137–5155 Supply chain performance measurement: a literature review Goknur Arzu Akyuz* and Turan Erman Erkan Department of Industrial Engineering, Atilim University, Kizilcasar Mahallesi, 06836 Incek Go¨lbasi, Ankara, Turkey (Received 19 February 2009; final version received 2 June 2009) This paper is intended to provide a critical literature review on supply chain performance measurement. The study aims at revealing the basic research methodologies/approaches followed, problem areas and requirements for the performance management of the new supply chain era. The review study covers articles coming from major journals related with the topic, including a taxonomy study and detailed investigation as to the methodologies, approaches and findings of these works. The methodology followed during the conduct of this research includes starting with a broad base of articles lying at the intersection of supply chain, information technology (IT), performance measurement and business process management topics and then screening the list to have a focus on supply chain performance measurement. Findings reveal that performance measurement in the new supply era is still an open area of research. Further need of research is identified regarding framework development, empirical cross-industry research and adoption of performance measurement systems for the requirements of the new era, to include the development...
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...A systems perspective on supply chain measurements Stefan Holmberg The Authors | Stefan Holmberg, Division of Logistics, Lund University, Sweden Abstract | Both practitioners and research scientists have noted a number of problems regarding measurement activities during the past decade. The problems reported suggest that measurement activities are fragmented both within and across organizations. Expands on a systems perspective on supply chain measurements and describes how problems can be communicated, understood and managed by developing methods and tools for describing interrelationships within supply chains. Empirical evidence from a case study of a Swedish home furnishing business supply chain provides data suggesting that firms within a supply chain cannot simply be categorized as either having adopted systems thinking or not. Rather, both structured models indicating a high degree of systems thinking, and problems showing fragmentation, are present. A performance model, which is used to reflect the systemic structure of an underlying supply chain and a potential integrator, is introduced and suggested as the focus of future research initiatives within supply chain measurements. Article type: case study. Keywords: Supply chain, Measurement, Systems integration, Performance measurement. Content Indicators: Research Implications** Practice Implications** Originality** Readability** International Journal of Physical Distribution & Logistics Management Volume...
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...SUPPLY MEASUREMENT BUSINESS METRICS Definition - A business metric is any type of measurement used to gauge some quantifiable component of a company's performance, such as return on investment (ROI), employee and customer churn rates, revenues, EBITDA, and so on. It can also be defined generally as a unit or units of measure to gauge a company's performance and provide the company's employees with a standard to improve. The current interest in performance measurements has led to a variety of supporting adages or clichés in the industry, such as: • “Anything measured improves.” • “What you measure is what you get.” • “Anything measured gets done.” • “You can’t manage what you do not measure.” These are not new business ideas, but there are a few new twists. Using measurements to support manufacturing operations has its roots back to the late 19th and early 20th centuries with ideas espoused by Frederick W. Taylor, the father of applying scientific methods to running business. His ideas for time and motion studies of operations were successfully used to scientifically manage production lines and warehouse operations. These ideas, however, led to exaggerated business processes that transitioned into “running a business by the stopwatch” with employers treating human employees as if they were highly reliable, predictable machines to be monitored and controlled. Over time, the workplace’s view of performance measurement became more humane and these exaggerated types...
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...of the system's performance is presented and perhaps analyzed. A large number of different types of performance measures have been used to characterize systems, particularly production, distribution, and inventory systems. Such a large number of available performance measures makes performance measure selection difficult. Generally, performance measurement research focuses on analyzing performance measurement systems that are already in use, categorizing performance measures and then studying the measures within a category, and building rules of thumb or frameworks by which performance measurement systems can be developed for various types of systems. Beamon (1996) presents a number of characteristics that are found in effective performance measurement systems, and can therefore be used in evaluation of these measurement systems. These characteristics include: inclusiveness (measurement of all pertinent aspects), universality (allow for comparison under various operating conditions), measurability (data required are measurable), and consistency (measures consistent with organization goals). Besides analyzing the measures based on their effectiveness, benchmarking is another important method that is used in performance measure evaluation. Benchmarking can be useful in that it can serve as a means of identifying improvement opportunities. Camp (1989) provides an excellent, comprehensive discussion of benchmarking. In order to study the large number of performance measures available...
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...INSTITUTE OF BUSINESS MANAGEMENT STUDIES Term End Examination/ Supply Chain Management. All Questions are compulsory. Total Marks : 100. Q.1 Consider the supply chain involved when a customer order a book from Amazon. A. Identify the push/pull boundary & two process each in the push & pull Process? Answer : In Amazon’s original operations design the push/pull boundary existed betwixt the retailer (Amazon) and their distributor. Amazon ordered product from the distributor and the customer order arrived. Today, Amazon has six warehouses where it stocks an inventory of items it is confident that will sell. In this scenario, the push/pull boundary exists between the customer and the retailer. All supply chain processes can be broken down into four process cycles that connect the five stages of the supply chain; the customer order cycle, the replenishment cycle, the manufacturing cycle, and the procurement cycle. The customer order cycle connects the customer with the retailer; this connection is made as the book, perhaps Supply Chain Management, is selected and paid for by the customer. Processes in the pull phase are the order fulfillment, shipping, customer returns, and customer billing. Processes in the push phase are production, stock replenishments, shipping, and payment. B. How do you characterize the competitive strategy of high end dept. store chain Such as Nordstrom? What are the key customer needs that Nordstrom aims...
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...of Operations & Production Management Does ICT influence supply chain management and performance?: A review of surveybased research Xuan Zhang Dirk Pieter van Donk Taco van der Vaart Article information: To cite this document: Xuan Zhang Dirk Pieter van Donk Taco van der Vaart, (2011),"Does ICT influence supply chain management and performance?", International Journal of Operations & Production Management, Vol. 31 Iss 11 pp. 1215 - 1247 Permanent link to this document: http://dx.doi.org/10.1108/01443571111178501 Downloaded on: 17 March 2015, At: 16:56 (PT) References: this document contains references to 123 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 3145 times since 2011* Downloaded by AFRICA UNIVERSITY At 16:56 17 March 2015 (PT) Users who downloaded this article also downloaded: Pietro Evangelista, Edward Sweeney, (2006),"Technology usage in the supply chain: the case of small 3PLs", The International Journal of Logistics Management, Vol. 17 Iss 1 pp. 55-74 http:// dx.doi.org/10.1108/09574090610663437 Dirk Pieter van Donk, (2008),"Challenges in relating supply chain management and information and communication technology: An introduction", International Journal of Operations & Production Management, Vol. 28 Iss 4 pp. 308-312 http://dx.doi.org/10.1108/01443570810861534 Benita M. Beamon, (1999),"Measuring supply chain performance", International Journal of Operations & Production Management...
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...ASSIGNMENT 1 KRANWORTH CHAIR CORPORATION Company Overview Kranworth Chair Corporation (KCC) was incorporated in 1987 by Weston Krantsz and Kevin Wentworth. KCC is a manufacturing company, and the name of the Company is associated with FOLD-IT! brand that includes production of high-quality and fashionable portable, folding chairs and related products. The main manufacturing line was concentrate to produce (i) folding chairs (produced at several price points) and related products (tripod stools, ottomans, costs, and stadium seats) in Mexico and China manufacturing facility and (ii) custom-designed products in the Denver location. The main KCC’s customers were: • Major retail chains (Wal-Mart, K-Mart, Target) that provided highest sales volumes but with lower gross margin; • Other retail chains (e.g. sporting goods); • Corporations for custom-design products orders. From the begging of activity KCC was a Company that had little competition and high margin rate. However, since 1999 the Company faces some cash and business issues related to the new loan, the new competitors on the market and the worldwide recession. At that point of time Kevin realized that in order to keep the business in good shape new changes should be done . This changes are to solve the main strategic issues the company faces, which include: eroding profit margin, fierce completion, inventory in more than a thousand types of products and parts and rather tight financial situation. Kevin realized...
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...The current issue and full text archive of this journal is available at www.emeraldinsight.com/0144-3577.htm Supply chain risk management and performance A guiding framework for future development Bob Ritchie Lancashire Business School, University of Central Lancashire, Preston, Lancashire, UK, and Supply chain risk management and performance 303 Clare Brindley Head of Department, Lancashire Business School, University of Central Lancashire, Preston, Lancashire, UK Abstract Purpose – The purpose of this paper is to examine the constructs underpinning risk management and explores its application in the supply chain context through the development of a framework. The constructs of performance and risk are matched together to provide new perspectives for researchers and practitioners. Design/methodology/approach – The conceptual and empirical work in the supply chain management field and other related fields is employed to develop a conceptual framework of supply chain risk management (SCRM). Risk in the supply chain is explored in terms of risk/performance sources, drivers, consequences and management responses, including initial approaches to categorization within these. Two empirical cases are used to illustrate the application of the framework. Findings – A new framework is presented that helps to integrate the dimensions of risk and performance in supply chains and provide a categorisation of risk drivers. Research limitations/implications – SCRM is at an early stage of evolution...
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...1. Introduction In recent years, a growing amount of research, much of which is still preliminary, has been dedicated to investigating maturity models development for the strategic management of supply chains (Chan and Qi, 2003; Gunasekaran et al., 2001; Coyle et al., 2003). The concept of process maturity derives from the understanding that processes have life cycles or developmental stages that can be clearly defined, managed, measured and controlled throughout time. A higher level of maturity, in any business process, results in: (1) better control of the results; (2) more accurate forecast of goals, costs and performance; (3) higher effectiveness in reaching defined goals and the management ability to propose new and higher targets for performance (Lockamy and McCormack, 2004; Poirier and Quinn, 2004; McCormack et al., 2008). In order to meet the performance levels desired by customers in terms of quantitative and qualitative flexibility of service in demand fulfillment, deadlines consistency and reduction of lead times related to fulfilling orders, firms have developed repertoires of abilities and knowledge that are used in their organizational process (Day, 1994 apud Lockamy and McCormack, 2004; Trkman, 2010). In two past decades, management of supply chain processes has evolved, also because of these new demands, from a departmental perspective, extremely functional and vertical, to an organic arrangement of integrated processes, horizontal and definitely...
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...to the following 1-Efficiency 2-Performance 3-Utilization Efficiency is the measurement for complete factory/ line/ section etc. It is the simplest measurement and can be calculated as the ratio of output vs input. Performance is the measurement of productivity for one particular resource like human (operator) or machine. The input is considered after excluding all lost times/ off standard time or time not available to the resource. Utilization is the measurement of available time to a resource vs complete time available. By calculation, it is also the ratio of efficiency and performance. Hence Efficiency = Performance * Utilization Capacity decision is important to reach: * Policy Factors: Management policy can affect capacity by allowing or not allowing capacity options such as overtime or second or third shifts * Operational Factors: Scheduling problems may occur when an organization has differences in equipment capabilities among different pieces of equipment or differences in job requirements. Other areas of impact on effective capacity include inventory stocking decisions, late deliveries, purchasing requirements, acceptability of purchased materials and parts, and quality inspection and control procedures. * Supply Chain Factors: Questions include: What impact will the changes have on suppliers, warehousing, transportation, and distributors? If capacity will be increased, will these elements of the supply chain be able to handle the increase? If...
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...3-6, 2007 SUPPLY CHAIN MANAGEMENT IN THE TEXTILE INDUSTRY: A SUPPLIER SELECTION MODEL WITH THE ANALYTICAL HIERARCHY PROCESS Asli Koprulu 1 aslik@ipekyol.com Process Management Director Ipekyol Tekstil ve Tic. San. A.S. Kazım Orbay Cd. 43 Bomonti Sisli 34381 Istanbul Turkey M. Murat Albayrakoglu albayrak@bilgi.edu.tr Coordinator, Business Informatics Program Istanbul Bilgi University Kurtulus Deresi Cd. 47 Dolapdere 34440 Istanbul Turkey Keywords: Supply-chain management (SCM), apparel industry, vendor selection, analytic hierarchy process (AHP) Summary: The aim of this study is to emphasize the importance the vendor selection problem and its relation to the supply chain strategy and goals. First, the current conditions of the textile or apparel industry are analyzed and the key factors for a successful supply chain considering the globalization of the industry are discussed. An analytical hierarchy process (AHP) model that an apparel company can use for the selection of suppliers is presented and a supplier relationship management (SRM) strategy is created based on the results of the model. In addition, strategic priorities for the supplier selection problem are identified and weights are developed to select the right supplier that fits the company’s strategy. Finally, the outcome and the implications of the model for implementation are discussed. 1. Introduction In today’s world of globalization many apparel retailers are building strong supply chains to gain advantage...
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...This page intentionally left blank Business Performance Measurement Drawing together contributions from leading thinkers around the world, this book reviews recent developments in the theory and practice of performance measurement and management. Significantly updated and modified from the first edition, the book includes ten new chapters that provide a comprehensive review of performance measurement from the perspectives of accounting, marketing, operations, public services and supply chain management. In addition to these functional analyses the book explores performance measurement frameworks and methodologies, practicalities and challenges, and enduring questions and issues. Edited by one of the world’s leading experts on performance measurement and management, Business Performance Measurement will be of interest to graduate students, managers and researchers who wish to understand more about the latest developments in this rapidly changing field. Andy Neely is Deputy Director of the ESRC/EPSRC AIM Research initiative, Professor of Operations Strategy and Performance at Cranfield School of Management, and Visiting Professor of Operations Management at London Business School. Business Performance Measurement Unifying theories and integrating practice Second edition Edited by Andy Neely CAMBRIDGE UNIVERSITY PRESS Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo Cambridge University Press The Edinburgh Building, Cambridge...
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...The key drivers that are moves an organization towards implementing an integrated supply chain. Integration: This era of supply chain management studies was highlighted with the development of Electronic Data Interchange (EDI) systems in the 1960s and developed through the 1990s by the introduction of Enterprise Resource Planning (ERP) systems. This era has continued to develop into the 21st century with the expansion of internet-based collaborative systems. This era of supply chain evolution is characterized by both increasing value-adding and cost reductions through integration. By developing cross-functional integration, supported by data warehousing and shared roles and responsibilities, organizations began to create a customized view of the customer. Support issues, Web hits, sales calls and marketing inquiries started building a deeper understanding of each customer and allowed aggressive organizations to adapt their tactics to fit individual needs. a) Customer service management process Customer Relationship Management concerns the relationship between the organization and its customers. Customer service is the source of customer information. It also provides the customer with real-time information on scheduling and product availability through interfaces with the company's production and distribution operations. Successful organizations use the following steps to build customer relationships: determine mutually satisfying goals for organization and customers ...
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...Supply chain management (SCM) is a broadened management focus that considers the combined impact of all the companies involved in the production of goods and services, from suppliers to manufacturers to wholesalers to retailers to final consumers and beyond to disposal and recycling. This approach to managing production and logistics networks assumes all companies involved in the process of delivering goods to consumers are part of a network, pipeline, or supply chain. It encompasses everything required to satisfy customers and includes determining which products they will buy, how to produce them, and how to deliver them. The supply chain philosophy ensures that customers receive the right products at the right time at an acceptable price and at the desired location. Increasing competition, complexity, and geographical scope in the business world have led to this broadened scope and continuing improvements in the capabilities of the personal computer have made the optimization of supply chain performance possible. Electronic mail and the Internet have revolutionized communication and data exchange, facilitating the necessary flow of information between the companies in the supply chain. Companies that practice supply chain management report significant cost and cycle time reductions. For example, Wal-Mart Stores Inc. announced increases in inventory turns, decreases in out-of-stock occurrences, and a replenishment cycle that has moved from weeks to days to hours. A fundamental...
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...AVION, INC. CASE 1.What parts of the supply chain are involved with the situation in this case? What is the responsability of each part in order to maintain a smooth flow of material? In this case, several parts of the supply chain are involved with the situation and they are as follows: Production management, Foster Technologies Their responsability is to produce the material that the company Avion inc requires by the contract.Iftheycannot fullfilledwhatisrequestedandtheyneedtochangethem,they should communicate to the material management of Avion, Inc. Procurement management, Avion, Inc. Their responsability is to communicate with the production group and with the material group more often. If they had known that the monthly volume requirements and the lead time was changed by the production group they would have not blame to Foster Technologies. Also, they should work with engineering more closely so they can locate more sources of technology and select suppliers efficiently. The flow of information with the supplier is also very important to identify the problems. Production management, Avion, Inc. Their responsability is to produce the goods ordered. They should not have changed the requirements for the material. If they need to change them, they should communicate to the material management group. Material management, Avion, inc. They should have pay more attention to the inquiries made by Poster Technologies. 2.What inicially appears to be the problem...
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