An integrated AHP-based scheme for performance measurement in humanitarian supply chains

Purpose In recent years, several performance indicators have been proposed in humanitarian supply chains (HSCs). Selecting the most relevant key performance indicators (KPIs) is challenging for some humanitarian organizations (HOs) because it involves a considerable amount of complexity and information overload which could lead to judgment biases in the decision-making process. Existing performance measurement studies lack critical analysis for prioritization of performance indicators. Since the process of KPIs selection and categorization is a complex, domain based and subjective process, a systematic guideline is needed. To address this gap, the purpose of this paper is to propose an integrated performance measurement scheme that can consolidate KPIs into an overall performance score based on the weighting of the performance indicators in HSCs. Design/methodology/approach Data collection was based on questionnaire surveys and direct interviews with practitioners from international HOs. Findings This paper proposes an integrated scheme based on balanced scorecard and analytic hierarchy process for performance evaluation of HOs. Research limitations/implications The respondents were limited to the humanitarian logistics experts from Malaysian-based international HOs. Practical implications The scheme enables the benchmarking of HOs’ performance that could be useful for decision makers in HSCs. Originality/value This paper provides the ranking and prioritization of KPIs in HSCs. The approach presented in this paper enables an effective and integrated performance measurement in HSCs.

[1]  Thomas L. Saaty.  What is the analytic hierarchy process , 1988 .

[2]  R. Kaplan,et al.  The balanced scorecard--measures that drive performance. , 2015, Harvard business review.

[3]  Andy Neely,et al.  Performance measurement system design , 1995 .

[4]  Benita M. Beamon,et al.  Measuring supply chain performance , 1999 .

[5]  Hanne Nørreklit.  The Balance on the Balanced Scorecard: A Critical Analysis of Some of Its Assumptions , 2000 .

[6]  R. Kaplan.  Strategic Performance Measurement and Management in Nonprofit Organizations , 2001 .

[7]  C. Narasimhan,et al.  Customer Profitability in a Supply Chain , 2001 .

[8]  T.C.E. Cheng,et al.  Measures for evaluating supply chain performance in transport logistics , 2002 .

[9]  Bernard Marr,et al.  Business performance measurement – past, present and future , 2003 .

[10]  G. Lawrie,et al.  Third‐generation balanced scorecard: evolution of an effective strategic control tool , 2004 .

[11]  Yvonne P. Shanahan,et al.  The Balanced Scorecard: A New Zealand Perspective , 2005 .

[12]  Pietro Micheli,et al.  Performance measurement frameworks in public and non-profit sectors , 2005 .

[13]  Per Nikolaj Bukh,et al.  Re-examining the cause-and-effect principle of the Balanced Scorecard * , 2005 .

[14]  Evangelos Grigoroudis,et al.  A risk assessment approach in selecting environmental performance indicators , 2006 .

[15]  Luk N. Van Wassenhove,et al.  Humanitarian aid logistics: supply chain management in high gear , 2006, J. Oper. Res. Soc..

[16]  L. V. Van Wassenhove.  Humanitarian aid logistics: supply chain management in high gear , 2006 .

[17]  Pedro M. Reyes,et al.  Improving Reverse Supply Chain Operational Performance: A Transshipment Application Study for Not‐for‐Profit Organizations , 2006 .

[18]  Tun Lin Moe,et al.  Balanced scorecard for natural disaster management projects , 2007 .

[19]  A. Gunasekaran,et al.  Performance measures and metrics in logistics and supply chain management: a review of recent literature (1995–2004) for research and applications , 2007 .

[20]  Arash Shahin,et al.  Prioritization of key performance indicators: An integration of analytical hierarchy process and goal setting , 2007 .

[21]  G. Kovács,et al.  Humanitarian logistics in disaster relief operations , 2007 .

[22]  M. Sharma,et al.  An integrated BSC‐AHP approach for supply chain management evaluation , 2007 .

[23]  Benita M. Beamon,et al.  Performance measurement in humanitarian relief chains , 2008 .

[24]  Milind Kumar Sharma,et al.  An application of the integrated AHP-PGP model for performance measurement of supply chain management , 2009 .

[25]  Sabine F. Schulz,et al.  Logistics performance management in action within a humanitarian organization , 2009 .

[26]  B. Chae,et al.  Developing key performance indicators for supply chain: an industry perspective , 2009 .

[27]  Surendra S. Yadav,et al.  An application of interpretative structural modeling of the compliance to food standards , 2009 .

[28]  Jian Cai,et al.  Improving supply chain performance management: A systematic approach to analyzing iterative KPI accomplishment , 2009, Decis. Support Syst..

[29]  S. Pettit,et al.  Critical success factors in the context of humanitarian aid supply chains , 2009 .

[30]  Erik Hofmann,et al.  Value-based performance measurement in supply chains: a case study from the packaging industry , 2009 .

[31]  E. A. van der Laan,et al.  Performance measurement in humanitarian supply chains , 2009 .

[32]  G. Kovács,et al.  Identifying challenges in humanitarian logistics , 2009 .

[33]  Daniela Carlucci,et al.  Evaluating and selecting key performance indicators: an ANP-based model , 2010 .

[34]  Caroline C. Krejci,et al.  Coordination in humanitarian relief chains: Practices, challenges and opportunities , 2010 .

[35]  S. Garg,et al.  Interpretive structural modelling of enablers for improving the performance of automobile service centre , 2010 .

[36]  Sander de Leeuw,et al.  Towards a Reference Mission Map for Performance Measurement in Humanitarian Supply Chains , 2010, PRO-VE.

[37]  R. Oloruntoba.  An analysis of the Cyclone Larry emergency relief chain: Some key success factors , 2010 .

[38]  Alexandre Veronese Bentes,et al.  Multidimensional assessment of organizational performance: Integrating BSC and AHP☆ , 2010 .

[39]  Richard Cuthbertson,et al.  Performance measurement systems in supply chains: A framework for contextual analysis , 2011 .

[40]  Kuan Yew Wong,et al.  Development of key performance measures for the automobile green supply chain , 2011 .

[41]  Silvia Rossi,et al.  Agile and lean principles in the humanitarian supply chain , 2012 .

[42]  Mónica García-Melón,et al.  Setting competitiveness indicators using BSC and ANP , 2012 .

[43]  Lorenzo Lucianetti,et al.  Contemporary Performance Measurement Systems: A Review of Their Consequences and a Framework for Research , 2012 .

[44]  Walid Cheffi,et al.  Green supply chain performance measurement using the analytic hierarchy process: a comparative analysis of manufacturing organisations , 2013 .

[45]  Pervaiz Akhtar,et al.  Coordination in humanitarian relief chains: chain coordinators , 2012 .

[46]  Virgilio Cruz-Machado,et al.  Using interpretive structural modelling to identify and rank performance measures: An application in the automotive supply chain , 2013 .

[47]  Kwee Keong Choong.  Understanding the features of performance measurement system: a literature review , 2013 .

[48]  Didier Gourc,et al.  Towards a crisis performance-measurement system , 2013, Int. J. Comput. Integr. Manuf..

[49]  Alev Taskin Gumus,et al.  A trapezoidal type-2 fuzzy MCDM method to identify and evaluate critical success factors for humanitarian relief logistics management , 2014, J. Intell. Fuzzy Syst..

[50]  Mike Perkins,et al.  What do we really mean by “Balanced Scorecard”? , 2014 .

[51]  M. Piecyk,et al.  Performance measurement in humanitarian logistics: a customer-oriented approach , 2014 .

[52]  Z. Hoque.  20 years of studies on the balanced scorecard: Trends, accomplishments, gaps and opportunities for future research , 2014 .

[53]  Manoj Kumar Tiwari,et al.  Green supply chain performance measurement using fuzzy ANP-based balanced scorecard: a collaborative decision-making approach , 2014 .

[54]  M. Klumpp,et al.  Humanitarian supply chain performance management: a systematic literature review , 2014 .

[55]  Suresh Kumar Jakhar,et al.  An integrated model of supply chain performance evaluation and decision-making using structural equation modelling and fuzzy AHP , 2014 .

[56]  Ali Bozorgi-Amiri,et al.  A prioritization model for locating relief logistic centers using analytic hierarchy process with interval comparison matrix , 2015, Knowl. Based Syst..

[57]  Arni Halldorsson,et al.  Borrowing theories in humanitarian supply chain management , 2015 .

[58]  K. Scholten,et al.  Applicability of Performance Measurement Systems to Humanitarian Supply Chains , 2015 .

[59]  Cathy Macharis,et al.  Measuring while moving (humanitarian supply chain performance measurement – status of research and current practice) , 2015 .

[60]  Fabio De Felice,et al.  Development of a Framework for Sustainable Outsourcing: Analytic Balanced Scorecard Method (A-BSC) , 2015 .

[61]  Jarrod Goentzel,et al.  Measuring humanitarian supply chain performance in a multi-goal context , 2015 .

[62]  Ilias P. Tatsiopoulos,et al.  An application of AHP in the development process of a supply chain reference model focusing on demand variability , 2015, Oper. Res..

[63]  Akhilesh Barve,et al.  Analysis of critical success factors of humanitarian supply chain: An application of Interpretive Structural Modeling , 2015 .

[64]  Gaurav Kabra,et al.  Identification and prioritization of coordination barriers in humanitarian supply chain management , 2015 .

[65]  S. Pettit,et al.  The pre-positioning of warehouses at regional and local levels for a humanitarian relief organisation , 2015 .

[66]  Matthias Klumpp,et al.  Humanitarian supply chains and performance measurement schemes in practice , 2015 .

[67]  Jesús Peral Cortés,et al.  Obtaining Key Performance Indicators by Using Data Mining Techniques , 2015, ER Workshops.

[68]  M. Klumpp,et al.  The value of fourth-party logistics services in the humanitarian supply chain , 2015 .

[69]  Dinesh Kumar,et al.  A combined approach using AHP and DEMATEL for evaluating success factors in implementation of green supply chain management in Indian manufacturing industries , 2016 .

[70]  Alev Taskin Gumus,et al.  Humanitarian Relief Supply Chain Performance Evaluation: A Literature Review , 2016 .

[71]  R. D. Souza,et al.  A SCOR framework to measure logistics performance of humanitarian organizations , 2016 .

[72]  Zahir Irani,et al.  A decision support model for identification and prioritization of key performance indicators in the logistics industry , 2016, Comput. Hum. Behav..

[73]  B. Hellingrath,et al.  Making Performance Measurement Work in Humanitarian Logistics. The Case of an IT-supported Balanced Scorecard , 2016 .

[74]  J. Goentzel,et al.  Models and metrics to assess humanitarian response capacity , 2016 .

[75]  Kuan Yew Wong,et al.  Toward a dynamic balanced scorecard model for humanitarian relief organizations’ performance management , 2017 .

[76]  Mark Oremus,et al.  Investigating the key indicators for evaluating post-disaster shelter. , 2017, Disasters.

[77]  Davide Luzzini,et al.  Supply chain performance measurement systems: A systematic review and research agenda , 2017 .

[78]  Kannan Govindan,et al.  Exploring the impact of dynamic capabilities on sustainable supply chain firm's performance using Grey-Analytical Hierarchy Process , 2017 .

[79]  Alejandro Maté,et al.  Application of Data Mining techniques to identify relevant Key Performance Indicators , 2017, Comput. Stand. Interfaces.

[80]  Kannan Govindan,et al.  Prioritising indicators in improving supply chain performance using fuzzy AHP: insights from the case example of four Indian manufacturing companies , 2017 .

[81]  Francisco Rodrigues Lima Junior,et al.  Quantitative models for supply chain performance evaluation: A literature review , 2017, Comput. Ind. Eng..

[82]  Marianne Jahre.  Humanitarian supply chain strategies – a review of how actors mitigate supply chain risks , 2017 .

[83]  Fabio Echsler Minguillon,et al.  Selecting key performance indicators for production with a linear programming approach , 2017, Int. J. Prod. Res..

[84]  Anna-Mara Schön,et al.  Developing a camp performance indicator system and its application to Zaatari, Jordan , 2018 .

[85]  William Ho,et al.  The state-of-the-art integrations and applications of the analytic hierarchy process , 2017, Eur. J. Oper. Res..

[86]  Ruth Banomyong,et al.  A systematic review of humanitarian operations, humanitarian logistics and humanitarian supply chain performance literature 2005 to 2016 , 2019, Ann. Oper. Res..