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Supply Chain Performance Measurement Models: A Comparative Study

February 2022

February 2022

Authors:

Ferdoush Saleheen

Higher College of Technology (UAE)

Md. Mamun Habib

Independent University, Bangladesh

The study investigated supply chain performance measurement models based on the primary and the secondary data and the justification of this paper is to evaluate the literature on performance measurement of the supply chain management to capture current practices, distinguish gaps and advocate future research prospects used through a comparative study of different supply chain performance measurement models. As of today, the measurement of supply chain performance is dependent on the Balanced Scorecard (BSC) and the Supply Chain Operations Reference (SCOR) model which requires the adaptation of a holistic approach such as the application of sustainability, and resilient supply chain considering the constant change of the business dynamics. As a result, many manufacturing companies failed to attain a precise performance measurement evaluation due to a lack of an Integrated Supply Chain Performance Measurement (ISCPM) model and knowledge in the manufacturing industry. This study illustrates the Integrated Supply Chain Performance Measurement (ISCPM) model and makes a comprehensive comparison with the BSC and the SCOR model. ISCPM model has been developed through the supply chain performance attributes and performance measurement index in the outlook of input-process-output considering the BSC and the SCOR model at three decisions levels. The model applies quantitative techniques to bring synergic effect to all stakeholder issues and incorporates ten supply chain performance measurement attributes and 36 performance measurement indexes as supplier relationship management (SRM), internal supply chain management (ISCM), and customer relationship management (CRM).

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Vol.%11,%No.%1,%February%2022

Int.%J%Sup.%Chain.%Mgt

Supply Chain Performance Measurement

Models: A Comparative Study

Ferdoush Saleheen #1, Md. Mamun Habib*2

#School of Quantitative Sciences, Universiti Utara Malaysia (UUM)

*School of Business & Entrepreneurship, Independent University, Bangladesh (IUB)

1ferdoushsaleheen@gmail.com

2mamunhabib@aiub.edu.bd

Abstract— The study investigated supply chain

performance measurement models based on the primary

and the secondary data and the justification of this paper

is to evaluate the literature on performance

measurement of the supply chain management to

capture current practices, distinguish gaps and advocate

future research prospects used through a comparative

study of different supply chain performance

measurement models. As of today, the measurement of

supply chain performance is dependent on the Balanced

Scorecard (BSC) and the Supply Chain Operations

Reference (SCOR) model which requires the adaptation

of a holistic approach such as the application of

sustainability, and resilient supply chain considering the

constant change of the business dynamics. As a result,

many manufacturing companies failed to attain a precise

performance measurement evaluation due to a lack of an

Integrated Supply Chain Performance Measurement

(ISCPM) model and knowledge in the manufacturing

industry. This study illustrates the Integrated Supply

Chain Performance Measurement (ISCPM) model and

makes a comprehensive comparison with the BSC and

the SCOR model. ISCPM model has been developed

through the supply chain performance attributes and

performance measurement index in the outlook of input-

process-output considering the BSC and the SCOR

model at three decisions levels. The model applies

quantitative techniques to bring synergic effect to all

stakeholder issues and incorporates ten supply chain

performance measurement attributes and 36

performance measurement indexes as supplier

relationship management (SRM), internal supply chain

management (ISCM), and customer relationship

management (CRM).

Keywords - Integrated Supply Chain Performance

Measurement (ISCPM), Supply Chain Operations

Reference (SCOR), and Balanced Scorecard (BSC).

Introduction

Supply Chain Management (SCM) has been gaining

considerable attention from business practitioners and

researchers, where it is now acknowledged as a

weapon to bring cutting-edge knowledge and a new

paradigm to bring multi-dimensional efficiency. This

is an integrated process to perceive an operation from

a holistic approach of an organization from raw

material suppliers, product manufacturers, storage,

delivery and ultimately reaching to the end customers

at the stores [1].

In the era of a free-trade economy with the accessibility of

information, organizations continuously thrive to satisfy

customers. Simultaneously due to the in-equilibrium

situation of demand versus supply, the expectation level of

the customers is getting unexpectedly higher [2].

Companies, therefore, need to focus on cost efficiency to

retain their profitability.

A substantial study has been conducted on supply chain

performance measurement (SCPM), however,

manufacturing companies were unsuccessful to have

precise performance measurement tools due to lack of an

Integrated Supply Chain Performance Measurement

(ISCPM) model and knowledge in the manufacturing

industry. Supply Chain Performance Measurement

(SCPM) framework and model facilitates to measurement

and assess the overall efficiency level of the organization

[12]. It also helps business managers to take decisions by

giving consolidated information by processing all the

information with different tools. Supply Chain

Performance Measurement (SCPM) helps an organization

to understand its overall position through understanding a

holistic approach [7]. Therefore, decision-making on

setting its goals, objectives for the long term as well as the

short term becomes convenient. Organizations nowadays

are keen to measure the efficiency level through developing

different sets of performance measurement parameters

from procurement, manufacturing, warehouse, distribution,

customer service as well as the financial impacts of the

organization. Top executives are more interested to see the

bottom-line impacts [6].

Literature Review

There are several parameters and performance

measurement tools available, however, the major concern

is to validate the tools and their applicability. These

parameters in some cases don't reflect a holistic view rather

it gives a biased picture focusing on one particular aspect.

[5] reviewed performance measurement system designed

and focused on three perspectives. The first perspective

was the performance measures and the study revealed that

the most important measures of manufacturing’s

performance are related to quality, time, cost, and

flexibility. The second outlook is to deal with the

performance measurement system as an entity [10], [25].

______________________________________________________________%

International*Journal*of*Supply*Chain*Management*

IJSCM,%ISSN:%2050-7399%(Online),%2051-3771%(Print)%

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The study also reviewed the various dimensions of a

performance measurement system and categorized the

“balanced scorecard” as the best-known performance

measurement framework.

The BSC model provides managers with sufficient

information to address the financial perspective,

internal business perspective, customer perspective,

and innovation and learning perspective. Concerning

this assumption, the study classified the performance

measurement system environment into two

dimensions, the internal environment which presents

the organization itself, and the external environment to

reflect the market within which the organization

competes. [2] discussed some of the challenges

hindering the development of a performance

measurement system to improve performance and

accountability. The findings revealed that a successful

performance measurement system requires its

purposes to be set and its targeted outcome clearly to

be identified. A resource-based strategy focuses on

measuring costs by assessing how efficiently a

process' inputs are utilized to produce a targeted

output. The review indicated that the real challenge

within the emerging context is to develop an integrated

and holistic understanding of performance

measurement through understanding performance

measurement as a social system, understanding

performance measurement as a learning system [4],

[35], [36].

Supply Chain Performance

Measurement

Performance Measurement System (PMS) helps to

take decisions by synchronizing, analyzing, and

consolidating the information or data through a

systematic process. In PMS, the term "Balanced" is

used to explain its view as holistic, which is connected

throughout the organization both internally as well as

externally [9], [28]. Supply Chain Performance

Measurement (SCPM) framework and model

facilitates to measurement and assess the overall

efficiency level of the organization. It also helps

business managers to take decisions by giving

consolidated information by processing all the

information with different tools. Organizations

nowadays are keen to measure the efficiency level

through developing different sets of performance

measurement parameters from procurement,

manufacturing, warehouse, distribution, customer

service as well as the financial impacts of the

organization. Top executives are more interested to

see the bottom-line impacts [13].

There are several parameters of performance

measurement tools available, however, the major

concern is to validate the tools and their applicability.

The parameters are in some cases don't reflect a

holistic view rather it gives a biased picture focusing

on one particular aspect.

The performance measurement requires also have the

capacity to measure applying different measuring tools

simultaneously and oversee it financial, non-financial

and understand its qualitative approach.

Performance measurement parameters are aligned with

certain characteristics such as its comprehensiveness (to

include all factors), universal acceptability (capable to

compare under different circumstances), quantifiably

(capable to numerically measure), and steadiness

(continuous performance with similar pace aligned with

organizational goals). The performance of Supply Chain

Management (SCM) is classified into financial and non-

financial are as follows:

Figure 1. Classification of SCM Performance

Measurement [29]

Activity-Based Costing (ABC) emphasizes an effort to

fasten financial measures to operational performance

which contains breaking down activities into distinct jobs

or cost drivers while appraising the resources, such as time

and costs needed for each one. Dimension-based

Measurement Systems (DBMS) is well-known on the

principle that any supply chain can be measured through

Flexibility (F), Resources (R), and Output (O). Perspective-

based Measurement System (PBMS) perceives supply

chain with all the possible insights and delivers measures

to appraise each of them. It was conceptualized that

acknowledges six-core viewpoints - Operations Research,

System Dynamics, Marketing, Logistics, Organization, and

Strategy [29].

The Hierarchical-based Measurement System (HBMS)

concept was classified as strategic, tactical, or operational.

The main principle deals with appropriate management

levels to facilitate fast and appropriate judgments.

Function-based Measurement System (FBMS) was

originally intellectualized in 2005 to cover the

comprehensive performance measures. Efficiency-based

Measurement System (EBMS) measures the supply chain

performance in terms of efficiency that provides a

framework to study supply chain performance by

developing a Data Envelopment Analysis (DEA) model for

the internal supply chain performance efficiency using case

study applications [30].

Generic Performance-based Measurement System(GPMS)

have been developed since 1980 that have benefits and

limitations as well. Performance Prism Model suggests

Performance Measurement System under five perspectives

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- Stakeholder satisfaction, Strategies, Processes,

Capabilities, and Stakeholder contributions. Performance

Pyramid Model perceives to evaluate the organization's

strategy from top-down perspectives.

It measures external as well as internal effectiveness.

It evaluates the company’s vision, quality, customers,

productivity, cycle time, flexibility, etc. Medori and

Steeple’s Framework outlined a cohesive structure for

auditing and enhancing performance measurement

methods. It comprises six phases that begin with

describing manufacturing tactics and achievement

factors. In the following phase, the principal job is to

balance the company’s strategic necessities from the

preceding period with competitive urgencies and

choose the most appropriate procedures [31].

Figure 2. The Balanced Scorecard Model [2]

[8] in figure 2 pronounced the Balanced Scorecard

(BSC) model as an authoritative performance

measurement instrument, and it allows administrators

to detect a composed understanding, where the

researchers recommended four basic perceptions that

administrators should observe and follow - financial,

customer feedback, internal business processes &

innovation and learning perceptions. The author

demonstrated how SCM structure is connected in a

balanced scorecard model where the BSC model is

dominant in delivering managers with a comprehensive

image of business performance. Nevertheless, it

undergoes two elementary restraints. First, it is a top-

down tactic. Hence, it is not participative and might

miscarry to perceive prevailing collaborations between

different procedure metrics [2].

BSC is devised as a monitoring and controlling tool

rather than an improvement tool that gives direction for

strategic level instead of functional or operational level.

It delivers little guidance on how the appropriate

measures can be identified, introduced, and ultimately

used to manage the business. It does not reflect the

market competition perspective. It does not stipulate

any mathematical logical relationships among the

individual's scorecard criteria. It is challenging to

construct comparisons within and across firms. It is not

effective for small and medium-sized organizations,

because it requires a lot of skill and expertise of the

management, time, and expenditure of money. It does

not take into account the relation of cause and effect

over time, provides mechanisms for selecting the best

measures of performance. BSC particularly refers to the

internal corporate perspective. External factors like risk

issues, government regulations, uncertainty,

collaborations, sustainability is not considered and it

does not also consider continuous improvement.

Figure 3. The SCOR model [9]

The SCOR model was formulated by the SC Council

(SCC) to support businesses to enhance the effectiveness

of their SCs and to deliver a process-based approach to

SCM, where the SCOR model carries a common process-

oriented language in communicating among its SC

associates in Plan, Source, Make and Deliver, where

SCOR model designate, measure and estimate any SC

configuration. There are twelve performance matrices as

part of the SCOR Model to evaluate process

performance: delivery reliability, flexibility,

responsiveness, costs, and an asset to derive a

quantifiable SC performance measure [9].

SCOR model does not consider global perspectives on

market uncertainty, external risk factors. Information

technology, information visibility does not cover within

SCOR. Business sustainability issues do not cover

within SCOR. Training and development, capacity

building is also excluded in the SCOR scope. No clear

interaction of inter and intra organizational or functional

activities [31].

3.1

Integrated Supply Chain Performance

Measurement (ISCPM) Model

Figure 4. ISCPM Model [26]

WPH

SRM

ISCM

CRM

SCPM

Shareholder

Growth &

Productivity

Nature'&'

Community

Sustainability

People

Customer Service

Customer

Organizational

Excellence

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The researcher in figure 4, classified ten performance

measurement attributes to measure supply chain

performance measurement. They are Financial Health

(FH), Collaboration (CL), Velocity (VC), Reliability

(RL), Visibility (VS), Resilience (RE), Continuous

Improvement (CI), Work People Health (WPH),

Sustainability (SS), and Service Excellence (SE).

In figure 4, Supplier Relationship Management (SRM)

is classified as an Input, Internal Supply Chain

Management (ISCM) is classified as Process and

Customer Relationship Management (CRM) is

classified as Output. All these ten attributes are then

clustered at a strategic, planning, and operational level

[26].

Supplier Relationship Management (SRM) at a

strategic level consists of Financial Health (FH),

Resilience (RE), Sustainability (SS), and Work People

Health (WPH). The Supplier Relationship

Management (SRM) at a planning level consists of

Collaboration (CL), Continuous Improvement (CI),

and Velocity (VC). And finally, the Supplier

Relationship Management (SRM) at an operational

level consists of Reliability (RL), Visibility (VS), and

Service Excellence (SE) [26], [32], [33].

Similarly, Internal Supply Chain Management (ISCM)

and Customer Relationship Management (CRM) have

been classified. The researcher exhibits the ISCPM

model, where the researcher classifies that an

organization is ultimately responsible for its four

stakeholders: shareholder, customer, people, nature &

community. The first and foremost responsibility of an

organization is to serve its shareholders' interests

through continuous growth and profitability [24], [17],

[20].

The shareholders are better served when an

organization has the highest focus to serve its

customers through ensuring customer service

excellence. The shareholders and customers could be

made satisfied when the people of the organization

perform satisfactorily through ensuring organizational

excellence. The last and most important for an

organization is to be responsible for their stakeholder

who is nature and community [23].

An organization should be responsible for its nature

and its community to ensure that it is not engaging

itself in any harmful activities through pollution of air,

soil, or releasing toxic gas or substances to nature. Not

only that, but an organization also has responsivity

towards its people, its community through the

eradication of poverty. Therefore, when a firm's

performance is balanced to its four stakeholders, then

and only true sustainability is achieved [21].

To measure the supply chain performance, there are

several tools and methods which have been already

discussed above. However, the Balanced Scorecard

(BSC) model and the SCOR model have been widely

been adopted and recognized as the two most

successful tools. The study focuses on the comparative

study of The Balanced Scorecard Model (BSC), the

SCOR model with Integrated Supply Chain

Performance Measurement Model (ISCPM) model are

as follows [27]:

Comparative Study of Performance

Measurement Models

A comprehensive summary of the Integrated Supply

Chain Performance Measurement (ISCPM) model, the

BSC model, and the SCOR model is given below

Table 1. Performance Measurement Models

Comparative [26]

Economic

Performance

Financial Asset

Cost ,, Cost

Budget Variance ,, Did not discuss

Inventory Did not discuss Did not discuss

Planning Variance ,, ,,

Partnership ,, ,,

Capacity Flexibility Did not discuss Agility

Speed ,,

Flexibility

Consistency ,, ,,

Global Risk Did not discuss

Enterprise Risk ,,

Human Capital and

Management Risk

Supplier Selection &

Appraisal

Be on Time Did not discuss Reliability

Be on Specifications ,, ,,

Be on Utilization ,, ,,

Process

Standardization

Internal Busienss Process Did not discuss

Culture for TQM ,, ,,

Culture for

Continuous

Improvement

,, ,,

Application of 5S ,, ,,

Application of Lean ,, ,,

Application of Total

Productive

Maintenance

,, ,,

Culture to Achieve and Excel

Performance in SC (CI)

Capacity and Speed in SC (VC)

Disruption in SC ( RE)

BSC

SCOR

ISCPM Model

Dependability on Internal SC Operations

(RL)

Did not discuss

previously, but in

SCOR 10.0 it

added.

Financial impacts in SC (FH)

Information Sharing and Partnership (CL)

Integration

Traceability

ERP Transactions

Leadership

Ethics, Integrity &

Compliance

Talent Attraction and

Retention

Health & Safety

Culture, Value and

Employee

Engagement

Sustainability to

Nature

Abstain to Damage Society and Nature

(SS)

Sustainability to

Community

Application of Green

Innovation in

Technology

Customer Satisfaction

Service Facilities &

Technical Skills

Did not discuss

SCOR

BSC

ISCPM Model

Did not discuss

Technological Innovation & Service

Quality (SE)

Customer / Learning &

Growth

Did not discuss

Traceability in SC (VS)

Did not discuss

Leadership & Corporate Governance

(WPH)

Learning & Growth

Did not discuss

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BSC model addressed four perspectives – financial,

internal business process, learning & growth, and

customer, whereas the SCOR model argues on five

perspectives – reliability, responsiveness, agility, cost,

and asset. In contrast, the ISCPM model considers that

to ensure a comprehensive analysis on SC

performance measurement, the model demands to

have ten attributes - financial health (FH),

collaboration (CL), velocity (VC), resilience (RE),

reliability (RL), continuous improvement (CI),

visibility (VS), workplace health (WPH),

sustainability (SS), and service excellence (SE).

Research Methodology

The study applied an exploratory study method based

on primary and secondary data. A review of journal

papers on the supply chain performance measurement

model was made. The target population in this study

was the Bangladesh manufacturing industry, which

consists of twenty-four manufacturing sectors. Based

on the analysis, twenty-four manufacturing sectors

have around 7,570 manufacturing companies.

Therefore, the population size is 7570. From the 7,570

lists of the respondent companies, 1,832 individual

company-have been chosen randomly and emails have

been sent to the supply chain heads to respond.

An individual company's supply chain professional

has been considered as the unit of analysis. This study

applied simple random sampling and used the Taro

Yamane table at ±7% precision level, and confidence

level at 95% the sample size of this research is 199. In

this study, the researcher composed 207 respondents

from the manufacturing industry. Hence, 207

respondents are the sample size in this study. Apart

from these, the study also explored secondary data

from Emerald, IJSCM, IGI, Nova publishers, etc.

Discussion

The 1st attribute of the ISCPM model is Financial

Health (FH). The BSC model in its financial

perspective did not elaborate its attributes rather it

discussed in general cost structure, asset utilization,

and long term shareholders value from the strategic

perspective which requires extensive high-end

leadership skills and business acumen to frame out,

where the SCOR model discussed on cost and asset

which can be segregated in the financial perspective.

Against the existing two models, the ISCPM model

stretches far beyond the traditional views and

segregates the financial attributes into three

performance measurement indexes (PMI) –

economic performance, cost, and budget variance

where the budget variance is a performance

measurement index (PMI) of financial health

attribute, which has not been discussed in the BSC

and the SCOR model and it addresses the planning

and actual deficiencies or surplus position in an

organization - such as budget variance in customs duty,

customs, penalty, demurrage, cost of

production, etc. Addressing Financial Health (FH) will

bring efficiency and ensure growth and productivity in

the organization. Hence, this will serve the interest of

the shareholders [27], [28].

The 2nd attribute of the ISCPM model is Collaboration

(CL) which describes Information Sharing and

Partnership among its suppliers, internal operations as

well as to its customers which helps the company to

synchronize its operations. However, the BSC model

and SCOR model did not address anything from this

perspective.

In contrast, the ISCPM model further elaborates the

attributes and segregates them into three performance

measurement indexes (PMI) – inventory, planning

variance, and partnership. As the organization excels

towards collaboration, this will improve the operational

efficiency and ignite to achieve the financial top and

bottom-line [26], [25], [15].

The 3rd attribute of the ISCPM model is Velocity (VC)

which describes Capacity & Speed with further

segregation on Capacity Flexibility, Speed, and

Flexibility Consistency. The BSC model did not cover

this perspective whereas the SCOR model however

clarified this attribute in Agility. As the company

accelerates its velocity in its overall process, this will

help the company to act agile and to keep the

consistency to meet and retain the market share and

satisfy its customers [26].

The 4th attribute of the ISCPM model is Resilience

(RE) which describes Disruption in SC, and the model

further elaborates into four performance measurement

indexes (PMI) – global risk, enterprise risk, human

capital & management risk, and supplier selection &

appraisal. In the context of a highly complex and

borderless economy, appraising Resilience is essential.

However, the BSC and the SCOR model ignored this

attribute. But, the SCOR 10.0 version has partially

covered risk through overall value at risk under the

subsection of Agility [25], [3].

The 5th attribute of the ISCPM model is Reliability

(RL) which describes Dependability in SC, and the

model further elaborates into three performance

measurement indexes (PMI) – Be on Time, Be on

Specification and Be on Utilizations. The BSC model

does not cove in this perspective. However, the SCOR

model elaborated this on Agility [22].

The 6th attribute of the ISCPM model is Continuous

Improvement (CI) which describes Culture to Achieve,

and Excel Performance in SC, and the model further

elaborates into six performance measurement index

(PMI) – Process Standardization, Culture for TQM,

Culture for Continuous Improvement, Application of

5S, Application of Lean, and Application of Total

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Productive Maintenance.

The BSC model discussed on Internal Business

Process and highlighted Cycle time, Quality,

Employee Skills, and Productivity in general but it did

not cover in-depth the quality process, and its

application to apply it in the manufacturing industry

where the SCOR model is absent in this perspective.

Against these two models, the ISCPM model is very

comprehensive and illuminates' issues related to the

industry on the people, process, productivity, and the

way forward [25].

The 7th attribute of the ISCPM model is Visibility

(VS) in SC, and the model further elaborates into three

performance measurement indexes (PMI) –

Integration, Traceability, and ERP Transaction [14],

[16], [18], [11].

To synchronize the company with the supplier,

internal operations with the customer, visibility is

important. Global companies have made a significant

investment in infrastructure and capacity

development, where the BSC and the SCOR model did

not focus on addressing it, where the ISCPM model

has covered major areas to ensure the seamless

connectivity and full optimization of the SC efficiency

[11].

The 8th attribute of the ISCPM model is Work, People

& Health (WPH) which describes on Leadership &

Corporate Governance in the overall organization

bring SC efficiency and the model further elaborates

into five performance measurement index (PMI) –

Leadership; Ethics, Integrity & Compliance, Talent

Attraction & Retention, Health & Safety; and Culture,

Value & Employee Engagement. The BSC model

discusses Learning & Development, where it clarifies

companies' ability to innovate and learn new things

aligning with the company's value. However, the

explanations do not cover what should be their

attribute or measurement tools for the functional and

operational aspects [35] . The BSC model does not talk

about the leadership, culture, motivation level of the

employees. Therefore, it seems ambiguous and

challenging for a mid-sized organization. Contrary to

that, the SCOR model is completely absent from this

perspective. Against these two models, the WPH

elaborates comprehensively to ensure organizational

excellence [26].

The 9th attribute of the ISCPM model is Sustainability

(SS) which describes on Abstain to Damage Society

and Nature and the model further elaborates into three

performance measurement indexes (PMI) –

Sustainability to Nature, Sustainability to Community,

and Application of Green SC. The BSC and the SCOR

model ignored this perspective whereas the ISCPM

model strongly emphasized the sustainability for an

organization to behave responsively for the planet and

the people [19].

The 10th attribute of the ISCPM model is Service

Excellence (SE) which describes Technological

Innovation & Service Quality, and the model further

elaborates into three performance measurement indexes

(PMI) – Innovation in Technology, Customer

Satisfaction, and Service Facilities & Technical Skills

[]. The BSC model discussed on bird's eye perspective

on technical innovation and its adaptability, but the

SCOR model completely ignored this emerging issue

where the ISCPM model elaborates and highlights in-

depth to meet the current industry needs [37].

Conclusion

This study unlocks the frontier to have comprehensive

analysis and a comparative study on supply chain

performance measurement among different models,

especially with the BSC and the SCOR model which are

widely adopted and applied across the industries. And

then these two models were compared in their attributes

with the Integrated Supply Chain Performance

Measurement (ISCPM) model. This study formulates

Integrated Supply Chain Performance Measurement

(ISCPM) model through the supply chain performance

attributes in the outlook of input-process-output

considering the BSC and the SCOR model at three

decisions levels with an application of quantitative

techniques to bring synergic effect to all stakeholder

issues. A gap analysis was performed through literature

reviews. The integrated model incorporates ten supply

chain performance measurement attributes as supplier

relationship management (SRM), internal supply chain

management (ISCM), and customer relationship

management (CRM). The model was then tested by 207

respondents from 24 sectors in the manufacturing

industry of Bangladesh, through a simple random

sampling. The ten attributes were ranked using Analytic

Hierarchy Process (AHP), and the weight and fitness of

the model, were validated using the Structural Equation

Modeling (SEM) technique. The developed ten

attributes reveal that the existing models such as the

BSC and the SCOR models have limitations in the

context of the current market dynamic changes.

Recommendation and Future

Research

The integrated supply chain performance measurement

(ISCPM) model was produced based on the primary

data from the Bangladeshi manufacturing industry,

however, it could apply to other manufacturing

industries as well from across the world. As this research

is validated empirically, therefore, it is suggested to

apply this model in real-life applications, particularly in

the manufacturing industry. In this study, the study

illustrated the model for the manufacturing industry,

though this is the limitation of this research. However,

the study unlocks further frontiers for the service

industry.

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Evaluating Supply Chain Performance through Financial Metrics: A Study in a Manufacturing Industry

Article

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This empirical study is based on primary data emphasizing the importance of evaluating supply chain performance through financial metrics, each activity within the supply chain directly impacts both the top line and bottom line of a business. In today's challenging business environment, organizations must prioritize monitoring their financial performance to ensure enduring resilience. The economy of Bangladesh has encountered turbulence due to disruptions such as the aftermath of the COVID-19 pandemic and the ongoing global political unrest. These occurrences have significantly impacted the business landscape, resulting in uncertainties in both demand and supply, shifts in consumer purchasing patterns, and notable increases in the prices of essential commodities and raw materials, therefore, the overall cost of business has risen. This study investigates the consequences of various disruptions, both internal and external, on the economy, adversely affecting organizations. The ability of an organization to withstand such challenges depends on maintaining robust financial and operational performance. Given the persistent global upheaval, there is a compelling need for an innovative approach to enhance supply chain optimizations, overall operational efficiency, and meticulous budget control and variance analysis aligned with financial planning. This is crucial at a substantial level to ensure positive entries in the profit and loss account and maintain a healthy cash flow statement. This study is done based on twenty-four (24) manufacturing sectors of Bangladesh. To address these challenges, the study advocates an Integrated Supply Chain Performance Measurement (ISCPM) model. This model contributes to academia through a novel approach, demonstrating its effectiveness by employing ten attributes to evaluate supply chain performance, with a specific focus on the financial performance termed Financial Health (FH), an attribute to measure supply chain performance in an organization. The study further elaborates Financial Health attributes into five key Performance Measurement Index (PMI) which are Economic Performance, Cost, Budget Variance, Inventory, and Planning Variance —within the context of manufacturing operations, providing insights into various facets of their impact. The study significantly contributes to the industry for practitioners by bringing synergy into the framework and performance measurement attributes, ultimately adding value to the manufacturing industry.

Supply Chain Resilience during Disruption: A Study on Supply Chain Performance Measurement

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Feb 2023

The study demonstrates the Pandemic COVID 19, and the Ukraine & Russia wars as devastating, which have distracted and made imbalanced to the rhythm of any business irrespective of the regions and the borders. The present disruption emphasizes the urgency to improve SCM optimization, manage risk, and be resilient in SCM operations at a significant level. The study unlocks Integrated Supply Chain Performance Measurement (ISCPM) model through ten supply chain (SC) performance measurement attributes and elaborates on the urgency of resilience in global supply chain operations. The study further stretches the four-performance measurement index of supply chain (SC) resilience to measure risk management at the end-to-end SCM. The ISCPM model was verified in the Bangladesh manufacturing industry through 24 sectors. The procedure was simple random sampling. This study significantly contributes to academia as well as in the industry through ten performance measurement attributes and the framework along with the performance measurement attributes.

Supply Chain Performance Measurement Framework for State-Owned Entities in South Africa

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Apr 2022

State-Owned Entities in South Africa remain the major contributor toward socioeconomic objectives, the bottom line, quality, value creation and cost savings. Although the National Treasury's Office of the Chief Procurement Officer monitors and evaluates supply chain performance, there is inefficient guidance on executing supply chain performance measurements in state-owned entities. Therefore, this paper aims to suggest a supply chain performance framework suitable for State-Owned Entities in South Africa. The manuscript employs a theoretical literature review on supply chain performance measurement systems and associated metrics. Further study using mixed methods or qualitative research is recommended to understand better the connection between supply chain strategy, SCM regulatory frameworks, SCM practices, and SCM effectiveness. The paper presents a framework that adequately implements supply chain performance measurement in state-owned entities. The study's main limitation was that it was restricted to SOEs registered with the SOEPF; more extraordinary samples from various SOEs would have been ideal. It is recommended that supply chain managers in state-owned entities carefully select supply chain performance measures.

The Impact of Russia-Ukraine War on Bangladesh’s Economy: A Supply Chain Perspective and Way Forward

Article

Apr 2024

Bangladesh’s economy is facing significant challenges restricting from the Russia-Ukraine conflict, intensified by its status as an oil-importing nation vulnerable to global oil price fluctuations. This study addresses the current perspectives and challenges which include inflationary pressures, trade imbalances, and disruptions in the supply chain, leading to increased expenditures for essential commodities. This research was developed through a systematic literature review based on secondary data, including online databases, journals, and review papers, etc. This exploratory study reveals that policymakers need to diversify energy sources, forge new trade partnerships, and implement measures to bolster economic resilience. The economic fallout from the conflict, surpassing the actual war in cost, has depleted the central bank's reserves, prompting austerity measures. The forex market experiences volatility, contributing to high trade deficits and the highest inflation rate in recent years. Bangladesh must address forex management challenges and formulate prudent policies for economic recovery. The conflict has disrupted global commodity markets, leading to inflationary pressures and increased costs for businesses in Bangladesh, especially larger organizations handling rising raw material costs and weak consumer demand. The rationale of this paper is to evaluate the literature on this aspect and apprehend the global demand, and supply of food and commodities, economic impacts in Bangladesh, challenges in global trade, trade relations, currency fluctuations, inflation, emergency price, and its consequences, recognize gaps and advocate future research itineraries. The paper offers a synopsis and appraisal of the overall economy of Bangladesh and finally navigates a way forward to the policymakers which would unlock further research to develop this sector.

Supply Chain Collaboration during Disruption through Sales & Operations Planning: A Study in a Manufacturing Industry

Article

Dec 2023

The study is based on primary and secondary data which unlocks a sequential supply chain disruption that occurred due to the pandemic and subsequent occurrences, including geopolitical tensions involving Ukraine and Russia, as well as Palestine and Israel. The geopolitical landscape is contingent upon the comprehensive strategic choices made by global leaders representing the United States, Russia, Turkey, India, the European Union, and Middle Eastern countries. There are several attempts made by researchers and industry practitioners to appropriately synchronize the demand and supply during this disruption. Substantial research has been conducted and literature is available in the field of supply chain collaboration. However, collaboration can’t be ensured unless the end-to-end SCM is synchronized through the Sales & Operations (S&OP) planning. Achieving smooth collaboration poses a formidable challenge, particularly amid disruptions and volatile conditions as seen today. This research undertakes a comprehensive examination by conducting a systematic literature review on various facets of sales and operations planning (S&OP), coupled with a survey utilizing a self-administered questionnaire across 24 manufacturing industries in Bangladesh. The primary aim of this paper is to assess S&OP best practices by evaluating different aspects applied in the industry, to ensure seamless connectivity, collaboration, and establishing criteria for measuring performance in the S&OP process. The authors underscore the significance of integrating S&OP and ultimately propose an innovative approach that integrates 10 attributes of supply chain performance measurement (SCPM) to fortify the S&OP process, enhancing its overall performance and effectiveness. This study not only paves the way for researchers and academia to investigate deeper into collaboration and risk management within supply chain management (SCM) operations during disruptions but also recommends industry practitioners novel concepts to enhance overall efficiency and provide substantial visibility into business operations.

Warehouse Operations in Bangladesh – Challenges and It’s Future Prospects

Article

Sep 2023

This study investigates the challenges and opportunities surrounding warehouse operations in Bangladesh, encompassing both the manufacturing and service sectors. This paper demonstrates above mentioned scenario in the context of supply chain management (SCM). Despite enduring a series of disruptions, including the pandemic and geopolitical tensions, notably the situation between Ukraine and Russia, the Bangladeshi economy has displayed remarkable resilience. In the fiscal year 2019-20, there was a significant decline in GDP growth, dropping from 7.88 percent in the pre-pandemic year to 3.45 percent. However, there was a notable resurgence in GDP growth, surging to 6.94 percent in FY 2020-21 and further rising to 7.10 percent in FY 2021-22. Unfortunately, the economic growth for FY 2022-23 has been impeded by the Russia-Ukraine crisis. The Gross Domestic Product (GDP) of an economy is a composite of contributions from three key sectors: agriculture, industry, and services. As the economic landscape evolves, the significance of the agriculture sector diminishes, while the industrial sector gains prominence. This research is developed based on primary and secondary data sources, encompassing online databases, journals, review papers, and more. The primary data collection includes a comprehensive survey questionnaire completed by 207 respondents from 24 industrial sectors in Bangladesh. The study addresses multiple challenges faced by warehouse operations and offers recommendations for best practices and a strategic way forward in the global arena for Bangladesh, where priorities such as achieving net-zero emissions, sustainability, and the adoption of lean warehouse operations are paramount. Furthermore, the study advocates for the implementation of the Integrated Supply Chain Performance Measurement (ISCPM) model, along with its ten attributes, as an integral component of adopting global best practices for practitioners, which would unlock further research to develop this sector.

Embedding Attributes towards the Supply Chain Performance Measurement

Article

Dec 2022

Dependency on the Balanced Scorecard (BSC) and the Supply Chain Operations Reference (SCOR) model is inadequate in the context of sustainability, environment, and other multiple factors along with the changes in the market dynamics. As a result, performance evaluation through a holistic approach in the manufacturing industry is not comprehensive. Therefore, a Supply Chain Performance Measurement (SCPM) is required to assess the supply chain's effectiveness. This research formulates Integrated Supply Chain Performance Measurement (ISCPM) model through the supply chain performance attributes in the outlook of input-process-output considering the BSC and the SCOR model at three decisions levels with an application of quantitative techniques to bring synergic effect to all stakeholder issues. A gap analysis was performed through systematic literature reviews. The integrated supply chain performance measurement model incorporates ten supply chain performance measurement attributes supplier relationship management (SRM), internal supply chain management (ISCM), and customer relationship management (CRM). The model was then tested from the various sectors in the manufacturing industry of Bangladesh, through a simple random sampling. The ISCPM model furnishes stakeholders of the manufacturing supply chain with the appropriate strategies to review and appraise their performance toward fulfillment of the ultimate goals. This model is suggested to be implemented in manufacturing industries to improve their operational performance. The study contributes to academia developing the ISCPM model with ten performance measurement attributes that enrich the literature on SCPM. It also contributes to the industry for practitioners by bringing synergy into the framework and performance measurement attributes which eventually upgrade the prosperity of the manufacturing industry and eventually the society.

Integrated Supply Chain Performance Measurement Model for the Manufacturing Industry

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Global Supply Chain Disruption Management Post Covid 19

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Constructing Performance Measurement Index for the Manufacturing Industry: An Empirical Study

Article

Full-text available

Jan 2022

Studies have been carried out along with literature on supply chain perfor- mance, yet manufacturing companies fail to attain a precise performance measurement evaluation due to a lack of an Integrated Supply Chain Perfor- mance Measurement (ISCPM) model and knowledge in the manufacturing industry. Though it has been widely accepted and adopted—performance evaluation through the Balanced Scorecard (BSC) and the Supply Chain Op- erations Reference (SCOR) model, however, it needs to address a holistic ap- proach considering the current complexity and market dynamics changes. This study formulates a conceptual Integrated Supply Chain Performance Measurement (ISCPM) model with thirty-six performance measurement in- dex through ten attributes in the outlook of input-process-output considering the BSC and the SCOR model at three decisions levels with an application of quantitative techniques to bring synergic effect to all stakeholder issues such as supplier relationship management (SRM), internal supply chain manage- ment (ISCM), and customer relationship management (CRM). The concep- tual model was tested in the manufacturing industry of Bangladesh. Finally, it recommends the urgency for an Integrated Supply Chain Performance Mea- surement (ISCPM) model which connects all the stakeholders aligning the organizational performance. Keywords Integrated Supply Chain Performance Measurement (ISCPM), Performance Measurement Index (PMI), The Balanced Scorecard (BSC), SCOR

Supply Chain Performance Measurement Model: A Literature Review

Article

Full-text available

Jun 2018

Supply chain management 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 literature on supply chain performance management from cost and non-cost standpoint, strategic, functional, or emphasis on operational aspects; perspectives from commercial as well as financial arenas. In order to gratify customer orders rapidly and efficiently than competitors, the supply chain needs to warrant continuous up-gradation 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 the 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.

Supply Chain Performance Measurement for Manufacturing Industry: A Study during Pandemic (Covid-19)

Conference Paper

Full-text available

Dec 2021

This paper illustrates this pandemic as absolute catastrophic, which has distracted the overall supply chain activities, with significant shortcomings for businesses, consumers, and the overall global economy. Though in a regular time, it has been extremely challenging to ensure seamless supply chain operations, and senior management had to struggle to respond to critical uncertainties to protect their employees, safeguard supply security, alleviate the financial collision, tackle reputational risks, and steer the market uncertainty. During this worldwide disruption, due to the pandemic, the world economy uncovers itself in an unbearable state - predominantly unpredictable consumer demand, uncertainty in supply, inflation of raw material, excessive shipping charges, unavailability of workforces, job losses, net profit plunges due to increasing Cost of Goods Sold (COGS), a pileup of inventory, slumping of exports, declining remittances, and so on. This paper demonstrates the current global disruption demands to revalidate the Supply Chain Performance Measurement (SCPM) of an organization, audit the existing models and tools to measure its performance with an utmost priority, and focus on resilience, risk management has now become inevitable. Finally, the researcher classified ten supply chain performance measurement attributes to address the overall operational efficiency and measure its performance and unlocks an Integrated Supply Chain Performance Measurement (ISCPM) model which supersedes all the current limitations of the Balanced Scorecard (BSC) model and the SCOR model to measure performance measurement in the current context.

An Empirical Study on Supply Chain Management Performance Measurement through AHP

Article

Full-text available

Dec 2018

Supply chain management (SCM) performance measurement has gained noteworthy considerations from researchers and practitioners in the manufacturing paradigms for improving organizational effectiveness that can be applied to pronounce and review the historical performance, as well as to set performance targets for the future. Precise diagnosis and analysis of SCM performance is imperative to attain and enhance organizational productivity and profitability through focusing strategic, tactical and operational planning as well as control. Enterprises scrutinize the best fit to evaluate the existing approaches of performance measurement framework including financial and operational. The researcher investigates a multi criteria decision analysis (MCDA) approach to demonstrate how analytic hierarchy process (AHP) is applied to select the best performance measurement framework and illustrates a decision model to structure the problem related to select the supply chain performance measurement system in a hierarchical form with substitutes to the decision maker. The study also determines that there are nine methods where supply chain performance could be evaluated. However, it is yet to establish and validate a comprehensive approach which can establish both qualitative and quantitative factors along with different decision making levels and rank the decision preferences which constitutes a gap between the theory and their potential application. Therefore, future contributions to the subject is indispensable through new innovation of a comprehensive supply chain performance measurement model.

Exploring the relationship between ICT, SCM practices and organizational performance in agri-food supply chain

Article

Full-text available

Feb 2020
Benchmark Int J

Purpose This paper presents the concerns in agri-food supply chain. Further the research investigates the role of information and communication technology (ICT) in agri-food supply chain and determines the impact of supply chain management (SCM) practices on firm performance. Design/methodology/approach The theoretical framework was proposed for the study on the basis of existing literature. Data for the study was collected with the help of structured questionnaire from 121 executives and officers of the public food distribution agency. Partial least square (PLS)–structured equation modeling was employed to test the framework and hypotheses. Findings The results indicate that ICT and SCM practices (logistics integration and supplier relationships) have a significant relationship. Furthermore, SCM practices (information sharing, supplier relationship and logistics integration) have a significant and positive impact on performance of the organization. Research limitations/implications Further research could be carried out to test the moderation effect of SCM practices between ICT and organizational performance (OP). Extending the research study to the companies operating in other sectors can enhance the external validity of the study and improve the accuracy of parameters examined. Practical implications This study can be of interest to the agri-food industry as well as other industry practitioners interested in improving the performance of the organization from the view of supply chain. Originality/value The outcomes of this study have important implications that translate into a series of recommendations for the management of public food distribution as well as other agri-food-based supply chains.

The impact of Industry 4.0 implementation on supply chains

Article

Full-text available

Jan 2020
J Manuf Tech Manag

Purpose-The research aims to analyse the impact of Industry 4.0 implementation on supply chains and develop an implementation framework by considering potential drivers and barriers for Industry 4.0 paradigm. Design/methodology/approach-A critical literature review is performed to explore key drivers and barriers for Industry 4.0 implementation under four business dimensions: strategic, organizational, technological, and legal & ethical. A system dynamics model is later developed to understand the impact of Industry 4.0 implementation on supply chain parameters, by including both the identified driving forces and barriers for this technological transformation. The results of the simulation model are utilised to develop a conceptual model for a successful implementation and acceleration of Industry 4.0 in supply chains. Findings-Industry 4.0 is predicted to bring new challenges and opportunities for future supply chains. The study discussed several implementation challenges and proposed a framework for an effective adaption and transition of Industry 4.0 concept into supply chains. Practical implications-The study is expected to benefit supply chain managers in understanding the challenges for implementing Industry 4.0 in their network. Originality/value-Simulation analysis provides examination of Industry 4.0 adoption in terms of its impact on SC performance and allows incorporation of both the drivers and barriers of this technological transformation into the analysis. Besides providing an empirical basis for this relationship, a new conceptual framework is proposed for Industry 4.0 implementation in supply chains.

Impact of big data analytics capabilities on supply chain sustainability: A case study of Iran

Article

Full-text available

Nov 2019

Purpose The purpose of this paper is to develop a theoretical model to explain the impact of big data analytics capabilities (BDAC) on company’s supply chain sustainability (CSCS). The secondary objective of the study is to assess the relationship between different dimensions of supply chain sustainability and companies’ BDAC. Design/methodology/approach This research was carried out by conducting a survey among 234 pharmaceutical companies in Iran (a case study of Iran), using a standard questionnaire of BDAC and United Nations (UN) online self-assessment on supply chain sustainability. However, the respond of managers of 188 companies were usable in this research. Smart PLS3 was used to employ partial least squares method to examine the validity and reliability of the measurement and structural model. Findings The results of this study demonstrate that BDAC have a strong impact on both pharmaceutical supply chain sustainability, and the dimensions including vision, engage and internal. It is found that the relationships between BDAC and the other dimensions of supply chain sustainability including expect, scope and goals are not significant but positive. Research limitations/implications Research on the relationship between BDAC and CSCS, especially in the pharmaceutical supply chain, is scanty, and this gap is highlighted in developing countries and the pharmaceutical supply chain that plays a prominent role in public health. This paper discusses several important barriers to forming a sustainable supply chain and strong BDA capabilities. Practical implications This paper could be a guide to managers and consultants who are involved in big data analytics and sustainable development. Since UN urges companies do the online self-assessment, the results of this paper would be attractive and useful for UN global compact specialists. Originality/value No study has directly measured the relation between BDAC and CSCS and different dimensions of CSCS, using a comprehensive survey throughout all pharmaceutical companies in Iran. Moreover, this research assesses the different dimensions of BDA capabilities and supply chain sustainability. This paper represents the facts about situation of sustainability of pharmaceutical supply chain and BDAC in these companies, and discloses several related issues that are serious barriers to forming a sustainable supply chain and strong BDAC. In addition, this paper provided academic support for UN questionnaire about CSCS and used it in the survey.

Embedding Attributes towards the Supply Chain Performance Measurement

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Dec 2022

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