Measuring supply chain performance: a lifecycle framework and a case study

Abstract

PurposeThe purpose of this paper is to provide a conceptual framework of the supply chain performance measurement system (SCPMS) lifecycle (highlighting key activities of the design, implementation, use and review phases) and to investigate how the different actors involved in the SCPMS perceive the system and can act to allow for an effective adoption.Design/methodology/approachThe SCPMS lifecycle framework is developed grounding on performance measurement and supply chain (SC) management literature. To answer the two theory-building research questions, an in-depth case study involving seven firms across three tiers of the mass retail SC has been conducted.FindingsThe empirical evidence highlighted potential SCPMS benefits (including operational performance improvement, higher control, lower information overloading and higher SC integration) and criticalities/barriers to an effective adoption (lack of industry standards, lack of trust regarding data reliability, SCPMS as a tool of power, lack of interest in the system and the performance metrics). Several elements characterizing the SCPMS lifecycle could increase its effective adoption: engaging SC partners in the design phase; relying on a rigorous primary data collection and performance measures calculation; and actively exploiting the tool through a systematic discussion on performance and establishing incentive/disincentives plans.Originality/valueThe paper contributes to the conceptualization of SCPMSs and to clarify how to ensure an effective SCPMS adoption: apart from relationship-specific attributes, SCPMS lifecycle phases are suggested to have a key role.