Abstract
Abstract: Performance measurement is considered a critical strategic process for companies operating in the logistics sector, as they need to perform high service levels under conditions of uncertainty. In this context, the present study aimed to evaluate the process of performance measurement in a multinational 3PL provider with a subsidiary in Fortaleza, Ceará. 31 indicators used by the company were identified and described, and its process of performance measurement was mapped. It was found that the company does not have a clear and well-structured process for performance measurement, which can lead to misinterpretations and management failures. In addition, the decision-making process proved to be mostly centered on the individual experience of employees, who might make decisions not aligned with the organizational objectives. The study discusses some manners to improve the process of performance measurement in the case investigated and proposes opportunities for further research in the field.
Highlights
Outsourcing logistics operations is a global trend (Abidi et al, 2019; Chen & Wu, 2011), as it enables savings by eliminating logistics costs relating to warehouses, trucks, and sorting equipment (Bolumole, 2003), allowing companies to focus on their essential skills (Oliveira et al, 2013)
The purpose of this study was to assess the performance measurement process in operations management in 3PL Providers based on a case study carried out in a multinational company with a branch in Fortaleza, the capital of the state of Ceará, Brazil
The presentation and discussion of the research findings were divided into three parts: (i) a characterization of Alpha Company’s indicators; (ii) a description of Alpha Company’s performance measurement process; and (iii) a summary of Alpha Company’s performance measurement
Summary
Outsourcing logistics operations is a global trend (Abidi et al, 2019; Chen & Wu, 2011), as it enables savings by eliminating logistics costs relating to warehouses, trucks, and sorting equipment (Bolumole, 2003), allowing companies to focus on their essential skills (Oliveira et al, 2013) This evolution is in line with changes in the business scenario, which have required greater managerial flexibility and dynamism (Fernandez et al, 2008; Zago et al, 2008), in light of the rapid technological development that has increased competition at the global level and eliminated physical barriers on the market (Bolumole, 2003). This process will be effective insofar as it allows management – decision making – to continuously improve this performance
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