Empirical study of measuring supply chain performance

Abstract

Purpose – Supply chain (SC) performance measurement – the process of qualifying the efficiency and effectiveness of the SC. The purpose of this paper is to create a SC measurement framework for manufacturing industry, define which data should be measured and verify the measurement framework in the case company’s SC. Design/methodology/approach – There is a review of the current understanding of supply chain management and literature related to SC performance measurement and the study creates a framework for SC measurement. This research is qualitative case study research. Findings – This study presents the main theoretical framework of SC performance measurement. The key elements for the measurement framework were defined as time, profitability, order book analysis and managerial analysis. The measurement framework is tested by measuring case SC performance. Research limitations/implications – In the study, a performance measurement framework was created for the needs of manufacturing industry. Suggestions for future research are multiple case study in different manufacturing industry areas and positivistic-based SC performance research. Practical implications – The measurement framework in this study offers guidelines for measuring the SC in manufacturing industry but the measurement framework could be used in different areas of industry as well. Originality/value – The SC performance measurement framework is tested and a valid framework for SC performance measurement in manufacturing industry.