Development of a connectivity map for measurement of total supply chain value

Abstract

Organisations intend to optimise their supply chain (SC) by following the most suitable SC strategies that serve their business interest to gain a competitive advantage. This paper reviews the literature to extract the relationship between leagile attributes and SC drivers to estimate total supply chain value (TSCV). As a result, three leagile attributes efficiency & flexibility (E&F), decoupling point (DP) and virtual network (VN) along with four main SC drivers consisting of production, distribution, inventory and information have been deployed. Effects of leagile attributes to the SC drivers are evaluated to measure TSCV using four performance metrics i.e., cost, quality, service and lead time. This research developed a conceptual connectivity map to measure the average value of each driver at a micro-level (upstream/downstream) to evaluate TSCV at the macro-level for SC optimisation. The proposed connectivity map would support supply chain managers to implement the leagile strategy by measuring TSCV.