Benchmarking supply chain operations

Abstract

Over the last decade or so a number of significant research studies have focused on the characteristics of an excellent supply chain. These studies have shifted the emphasis from operational to strategic considerations. The practice of supply chain management has also broadened to include both operational and strategic concerns. A framework was developed to evaluate both the operational and strategic effectiveness of the supply chain which was tested with ten consumer goods and automobile manufacturers. It was found that consumer goods companies had significant room to improve their logistics operations. But none had a logistics strategy to guide the change. Automotive companies, on the other hand, had more sophisticated logistics operations and had plans to improve further over the next two years. The framework described in this paper provides a useful benchmark set for focusing change projects to improve both operational and strategic capabilities of the corporate supply chain.