A proposed value model for prioritising supply chain performance measures

The purpose of this paper is to outline a new holistic approach for identifying and prioritising supply chain performance measures according to their importance in the evaluation of value-added activities in the entire supply chain. Analytic hierarchy process (AHP) technique was used for Pairwise comparisons of main supply chain functions, processes and criteria. A questionnaire consisting of comparison tables of all functions was designed based on the AHP methodology and structured interviews were conducted with expert managers of four large Iranian companies. Total weights of each function and its processes in generating value towards the entire supply chain were calculated and their priorities were identified. Total weight of each criterion in evaluating the performance of supply chain was also calculated and a short list of the most important, practical and strategic performance measures is proposed to help managers and practitioners in analysing their supply chains.

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

[2]  Vijay Kasi,et al.  Systemic Assessment of SCOR for Modeling Supply Chains , 2005, Proceedings of the 38th Annual Hawaii International Conference on System Sciences.

[3]  Adisak Theeranuphattana,et al.  A conceptual model of performance measurement for supply chains: Alternative considerations , 2007 .

[4]  William Ho,et al.  Integrated analytic hierarchy process and its applications - A literature review , 2008, Eur. J. Oper. Res..

[5]  A. Gunasekaran,et al.  Performance measures and metrics in a supply chain environment , 2001 .

[6]  E. L. Nichols,et al.  Supply Chain Redesign: Transforming Supply Chains into Integrated Value Systems , 2002 .

[7]  A. Noorul Haq,et al.  Fuzzy analytical hierarchy process for evaluating and selecting a vendor in a supply chain model , 2006 .

[8]  U. Bititci,et al.  Performance measurement in the value chain: manufacturing v. tourism , 2006 .

[9]  Henrique O‘Neill,et al.  The Extended Manufacturing Enterprise Paradigm , 1994 .

[10]  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 .

[11]  F. Chan,et al.  An innovative performance measurement method for supply chain management , 2003 .

[12]  M. Christopher Logistics and supply chain management , 2011 .

[13]  H. Günter,et al.  Measuring Supply Chain Performance: Current Research and Future Directions , 2006 .

[14]  M. Pandey,et al.  Performance Measures in Supply Chain Management , 2011 .

[15]  Robert J. Vokurka,et al.  Defining supply chain management: a historical perspective and practical guidelines , 1999 .

[16]  Hanne Vesth,et al.  The Scor Model: A Critical Review , 2004 .

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

[18]  Shoshanah Cohen,et al.  Strategic supply chain management : the five disciplines for top performance , 2005 .

[19]  T. Saaty Highlights and critical points in the theory and application of the Analytic Hierarchy Process , 1994 .