Supply Chain Metrics Research Articles

Defining Halal Supply Chain Management

ABSTRACTTo develop a rational understanding of Halal from Supply Chain‎ perspective and to cater the imminent research in this area a comprehensive ‎definition of Halal Supply Chain Management (HSCM) is proposed.‎ This paper identifies, categorises & analyses the definitions of HSCM available in the literature. Seven, well-known definitions of the HSCM from the existing literature were investigated for their preparedness and reviewed against the identified characteristics of Halal and the Supply Chain Management. The analysis exhibits that identified definitions narrowly addresses the characteristics of both Halal and Supply Chain Management. Thus, we have proposed a comprehensive definition of HSCM comprising of all the characteristics of Halal and the Supply Chain Management. The present work suggests that all the activities of Halal Supply Chain needs to be managed to extend Halal & Toyyib till the consumption point with improved performance. This definition is very much required by the researchers of this area in theory building, defining, standardising (or making process oriented) and testing relationships among the component of HSCM. Supply Chain executives also benchmark or standardise the Halal Supply Chain metrics against other competing Supply Chains/industries. This can help the stakeholders involved in advancing the Halal practices in Supply Chain environment.

Modelling the metrics of leagile supply chain and leagility evaluation

The modern manufacturing industries are witnessing a transient phase in their supply chain strategy. This study focuses 'lean', 'agile' and 'leagile' in the supply chain strategy. The success of an organisation in this competitive market depends on the management and improvement of supply chain. In this article, the performance metrics of a case supply chain have been modelled and then the dominant supply chain paradigm has been evaluated. A conceptual model for leagile supply chain metrics was developed. Using analytical network process, supply chain performance weight index for three paradigms have been computed. The supply chain performance weight index of lean, agile and leagile paradigms are 0.193, 0.301 and 0.506 respectively. Based on the desirability index score, 'leagile' has been selected as the best supply chain strategy. Using multi-grade fuzzy approach leagility index computed. Based on the computation, weaker areas have been identified and improvement proposals have been derived.

A Concept of Simulation-based SC Performance Analysis Using SCOR Metrics

The paper discusses a common approach to describing and analysing supply chains between simulation specialists and supply chain managers, which is based on Supply Chain Operations Reference (SCOR) model indicators and metrics. SCOR is a reference model of supply chain business processes. It is based on best practices and used in various business areas of supply chains. Supply chain performance indicators are defined by numerous measurable SCOR metrics. Some metrics can be estimated with simulation models. For an efficient supply chain analysis, one should evaluate the conformity of SCOR metrics with simulation-based assessment of performance indicators. Analysing projects in Supply Chain (SC) modelling area as well as analysing types of simulation results enables one to assess the conformity of the simulation-based performance indicators with SCOR model metrics of different levels. Supply chain simulation modelling coordinated with the SCOR model expands the scope of simulation model applications for analysing supply chain performance indicators. It helps one estimate specific metrics with simulation results.

Book review: Supply chain metrics that matter

Book review: Supply chain metrics that matter

Retracted: Applications of Mathematical Modeling for Sensitivity and Sustainability in Supply Chain Flexibility

Supply Chain Management (SCM) demands management of complex dependencies for sensitivity and sustainability on contest of teams, departments, drivers and matrices. It requires risk analysis of global partnerships, win-win contracts and sharing agreements with relevant companies. Supply Chain flexibility, drivers and metrics may include measurements for procurement, production, transportation, inventory, warehousing, material handling, packaging and customer service. There are hundreds of sensitivity that can be used to score Supply Chain Management performance. These results would lead to support and accommodate the sustainability which can be influenced by supply strategies and decisions on supply chain flexibility.

Performance metric optimization advocates CPFR in supply chains: A system dynamics model based study

Background: Supply Chain partners often find themselves in rather helpless positions, unable to improve their firm’s performance and profitability because their partners although willing to share production information do not fully collaborate in tackling customer order variations as they don’t seem to appreciate the benefits of such collaboration. Methods: We use a two-player (supplier-manufacturer) System Dynamics model to study the dynamics to assess the impact and usefulness of supply chain partner collaboration on the supply chain performance measures. Results: Simulation results of supply chain metrics under varied customer order patterns viz., basecase, random normal, random uniform, random upwardtrend, and random downwardtrend under (a) basecase, (b) independent optimization by manufacturer, and (c) collaborative optimization by manufacturer and supplier, are obtained to contrast them to develop useful insights. Conclusions: Focus on obtaining improved inventory turns with optimization techniques provides some viable options to managers and makes a strong case for increased collaborative planning forecasting and replenishment (CPFR) in supply chains. Despite the differences in the inventory management practices that it was contrasted with, CPFR has proven to be beneficial in a supply chain environment for all SC partners.

Supply chain performance metrics framework: literature review and research issues

This paper covered all the state of the art literature survey done on supply chain performance metrics up to date from the scientific journals, conference proceedings, case studies, white papers, books, internet and websites and developed a performance measure framework for performance metrics and finally identified the possible performance metrics from the review. Besides, the supply chain metrics of 25 top ranked companies in supply chain excellence are identified from the companies' performance report, research papers, case studies, white papers and websites to show the available current scenario of the metrics for benchmarking. This paper can be useful for researchers and practitioners as they can easily extract the existing supply chain metrics from this single document to further develop a framework depending up on the nature of the organisation considered. The future research directions are also suggested.

Supply chain performance metrics framework: literature review and research issues

This paper covered all the state of the art literature survey done on supply chain performance metrics up to date from the scientific journals, conference proceedings, case studies, white papers, books, internet and websites and developed a performance measure framework for performance metrics and finally identified the possible performance metrics from the review. Besides, the supply chain metrics of 25 top ranked companies in supply chain excellence are identified from the companies' performance report, research papers, case studies, white papers and websites to show the available current scenario of the metrics for benchmarking. This paper can be useful for researchers and practitioners as they can easily extract the existing supply chain metrics from this single document to further develop a framework depending up on the nature of the organisation considered. The future research directions are also suggested.

Retracted: Applications of Mathematical Modeling for Sensitivity and Sustainability in Supply Chain Flexibility

Supply Chain Management (SCM) demands management of complex dependencies for sensitivity and sustainability on contest of teams, departments, drivers and matrices. It requires risk analysis of global partnerships, win-win contracts and sharing agreements with relevant companies. Supply Chain flexibility, drivers and metrics may include measurements for procurement, production, transportation, inventory, warehousing, material handling, packaging and customer service. There are hundreds of sensitivity that can be used to score Supply Chain Management performance. These results would lead to support and accommodate the sustainability which can be influenced by supply strategies and decisions on supply chain flexibility.

DRIVERS OF FINANCIAL PERFORMANCE OF SUGAR INDUSTRY IN INDIA

The sugar and sugarcane prices are highly regulated by the state governments of India. The objective of our study is to find reasons for sustainability of sugar mills despite poor economics. Through secondary research, the supply chain and key financial metrics of five selected sugar mills are analyzed. Correlation coefficient is computed for the crucial pairs of financial ratios (control variables). The results indicated that sugar industries are able to sustain by leveraging the profits from by-products and the industry is suffering from the government policies of pricing sugar and sugarcane. Arrears in payments to farmers by sugar millers could be a way to regulate the supply (cultivation) of sugarcane by the farmers in the catchment area of their mills. It is also observed that volume of production increase does not drastically reduce the margin as it is widely believed among industry circles. Similarly, accounts payable is not a larger issue with millers whereas cane arrears could be an issue with farmers. The study emphasises the need for financial analysts closely monitoring volume, productivity, margin and payables. The study uses simple framework and tools for establishing a meaningful relationship among operating and financial parameters of the industry.

The role of hierarchical production planning in food manufacturing SMEs

Purpose – In recent years there has been an increasing interest in make-to-stock and make-to-order combined strategies in food manufacturing operations. However, most scholarly work to-date has neglected the role of hierarchical production planning (HPP) in guiding small- and medium-sized enterprise (SME) implementation of such strategies. The purpose of this paper is to address food SME manufacturers’ readiness to adopt such strategies, in terms of internal integration and their capability to adopt formalised planning approaches. Design/methodology/approach – This study adopted an action research methodology to explore the potential impact of HPP in SME food manufacturers. Selected companies had identified product variety management as a challenge and also had recognised the need to enhance internal integration. Given this, the research team, from a theoretical perspective, proposed the use of HPP set within a broader decision-making conceptual framework to improve internal integration and planning. Findings – This paper adopts the fundamental position that HPP provides a useful framework in the establishment of strategic and tactical level constraints and priorities which then act as specific guides at the operational level, and presents empirical evidence in a food SME manufacturing context. In the cases the authors studies, the cascading effect of this decision-making framework focused attention on key metrics, encouraged greater internal integration and delivered tangible, significant improvements in performance. This was greatly facilitated by the provision of new key data on the cost of certain managerial trade-offs which these firms faced. Originality/value – SMEs are of a scale that requires a formalised planning approach; however production planning systems are typically designed for large scale enterprises. This paper addresses the need of SMEs in this regard. Well-established supply chain metrics were used to establish the benefits of both HPP and resulting improvement in internal integration and beyond, in terms of improvement in the quality of planning decisions.

Horizontal logistics collaboration for enhanced supply chain performance: an international retail perspective

Purpose– The paper aims to develop a supply chain-driven model horizontal logistics collaboration (HLC). HLC initiatives can fail. To improve the chance of success, a thorough consideration of the potential issues involved, such as seeking supply chain partners’ support, ensuring access to information/data security and assessing whether an HLC model could bring improvements to a wide range of supply chain metrics rather than reductions in distribution costs only, needs to be understood before deciding to proceed with such an initiative.Design/methodology/approach– A two-stage methodology is deployed. As part of Stage 1, a series of 20 semi-structured interviews with senior managers from retailers, retailers’ suppliers and logistics service providers were undertaken. Subsequently, in Stage 2, a focus group with practitioners from retailers and logistics service providers was run to verify the findings gathered during Stage 1. Four elements of a new HLC project being considered are investigated by supply chain champions across the UK Fast-Moving Costumer Goods industry, namely, consideration factors, required synergies, enablers and anticipated output metrics.Findings– When considering whether to embark on an HLC project, the supply chain requirements need to be taken into account and potential supply chain performance benefits projected. The paper identified several consideration factors; synergies and enablers that support the development of HLC projects are identified, such as legislation, trust among partners, common suppliers and delivery bases, capable third party logistics (3PL) and an effective commercial model, including a fair sharing of benefits.Research limitations/implications– The research provides new understanding in accounting for the needs of the supply chain when considering an HLC initiative involving leading players from the retail sector.Practical implications– The importance of taking a supply chain approach when evaluating the feasibility of HLC is demonstrated. HLC arrangements among competing supply chains need to be designed and run by taking account of all supply chain partners, namely, suppliers, 3PLs and customers (in this case, retailers).Originality/value– The contribution is threefold: identification of outset consideration factors, ideal required synergies, actioning enablers and wider supply chain metrics of HLC; development of a supply chain-driven model for HLC, which includes in the decision-making whether or not to adopt a horizontal logistics collaboration model, wide supply chain metrics such as stock levels of finished products and shelf availability, inventory, working and fixed capital, and product waste in addition to distribution costs; and, the proposal of a new definition for HLC which challenges published definitions.

Lean supply chain performance measurement

Purpose – The purpose of this paper is to present supply chain metrics and to propose a fuzzy-based performance evaluation method for lean supply chain. Design/methodology/approach – To understand the overall performance of cost competitive supply chain the paper investigates the alignment of market strategy and position of the supply chain. Since lean is applicable in many supply chains, the authors propose a set of metrics to evaluate supply chain performance. Moreover, the paper uses a fuzzy model to evaluate the performance of cost competitive supply chains. Fuzzy is an appropriate model method when uncertainty is present. It also allows modelling of a significant number of performance metrics across multiple supply chain elements and processes. Competitive strategy can be achieved by using a different weight calculation for different supply chain situations. Findings – Research provides optimal metrics for lean supply chains. The proposed method can measure the performance of lean supply chains using a fuzzy approach and competitive strategies. Research limitations/implications – The metrics which have been selected to measure the performance of lean supply chains is particularly applicable for high volume, low-price products. Practical implications – By identifying optimal performance metrics and applying performance evaluation methods, managers can predict the overall supply chain performance under lean strategy. By identifying performance for each metric they can also categorize the existing performance and optimise them accordingly. Originality/value – This study provides a performance evaluation method for supply chain managers to assess the effects of lean tools and competitive strategies.

Evaluation of performance metrics of leagile supply chain through fuzzy MCDM

Article history: Received October 2, 2012 Received in Revised Format March 12, 2013 Accepted March 14, 2013 Available online March 15 2013 Leagile supply chain management has emerged as a proactive approach for improving business value of companies. The companies that face volatile and unpredictable market demand of their products must pioneer in leagile supply chain strategy for competition and various demands of customers. There are literally many approaches for performance metrics of supply chain in general, yet little investigation has identified the reliability and validity of such approaches particularly in leagile supply chains. This study examines the consistency approaches by confirmatory factor analysis that determines the adoption of performance dimensions. The prioritization of performance enablers under these dimensions of leagile supply chain in small and medium enterprises are determined through fuzzy logarithmic least square method (LLSM). The study developed a generic hierarchy model for decision-makers who can prioritize the supply chain metrics under performance dimensions of leagile supply chain. © 2013 Growing Science Ltd. All rights reserved.

Turnaround across diverse global supply chains using shared metrics and change methodology

PurposeThe purpose of this paper is to document the outcome of a global three‐year long supply chain improvement initiative at a multi‐national producer of branded sporting goods that is transforming from a holding structure to an integrated company. The case company is comprised of seven internationally well‐known sport brands, which form a diverse set of independent sub‐cases, on which the same supply chain metrics and change project approach was applied to improve supply chain performance.Design/methodology/approachBy using in‐depth case study and statistical analysis the paper analyzes across the brands how supply chain complexity (SKU count), supply chain type (make or buy) and seasonality affect completeness and punctuality of deliveries, and inventory as the change project progresses.FindingsResults show that reduction in supply chain complexity improves delivery performance, but has no impact on inventory. Supply chain type has no impact on service level, but brands with in‐house production are better in improving inventory than those with outsourced production. Non‐seasonal business units improve service faster than seasonal ones, yet there is no impact on inventory.Research limitations/implicationsThe longitudinal data used for the analysis is biased with the general business trend, yet the rich data from different cases and three‐years of data collection enables generalizations to a certain level.Practical implicationsThe in‐depth case study serves as an example for other companies on how to initiate a supply chain improvement project across business units with tangible results.Originality/valueThe seven sub‐cases with their different characteristics on which the same improvement initiative was applied sets a unique ground for longitudinal analysis to study supply chain complexity, type and seasonality.

A review on supply chain performance measures and metrics: 2000‐2011

PurposeThe paper reports a comprehensive review of supply chain performance measurement systems and raises a set of research issues leading to selected research questions.Design/methodology/approachThe articles which have been published in selected peer‐reviewed international journals in the last ten years were collected by using databases Scopus and ISI Web of Knowledge. The articles were scrutinized based on authors' perspective analysis (using supply chain measures and metrics, and enhancing supply chain performance as the key perspectives). The articles contributing significantly in the domain of supply chain measures and metrics were selected for final review and various issues were identified.FindingsThe paper argues that, despite considerable evidence from the literature in supply chain performance measurement in recent years, there is a large scope for research to address the issues in supply chain performance measurement, including: characteristics of measures and metrics, benchmarking of measures, use of management practices, integration and partnership and socio‐environmental relevance.Research implications/limitationsThe insights deduced in the paper are primarily based on 28 articles selected for critical review and analysis in the domain of supply chain measures and metrics and hence should be interpreted only as key concerns in the area.Originality/valueThe paper reports an evaluation of 28 key articles reported in the domain of supply chain performance measurement and indicates the research opportunities in the area.

Assessing supplier performances under partnership in project‐type procurement

PurposeThe purpose of this paper is to investigate the effects of a commercial partnership in a project‐type supply chain. The research focuses on the performance of suppliers who develop a partnering mechanism for procurement of complex manufacturing projects. In total, four supply chain metrics are evaluated: project scope change, ratio of actual‐to‐estimated project costs, gross profit margin, and delay in deliverable shipments. Hypotheses are formulated to contrast partnerships and arms‐length relationships for industrial procurement. Statistical results support the conclusion that supplier performances improve under partnership.Design/methodology/approachFour supply chain metrics were generated through review of literature and in‐depth field study. The authors utilized the supply chain management, project management, and principal‐agent theory literature to develop hypotheses to examine effects of instituting a partnership agreement. A case study approach was employed to collect financial and operational data from 167 projects among a manufacturing supplier and a group of customers that purchase industrial analyzer systems. Statistical techniques were employed for hypothesis testing.FindingsThe findings from the authors' empirical work support the prediction in partnership literature that suppliers' operational and financial performances improve after they and manufacturing customers jointly implement partnerships. A supplementary finding also suggests that a manufacturer should develop partnering mechanisms with suppliers to achieve higher performance for both the individual firms and the entire supply chain.Research limitations/implicationsThis study, like other “before and after” analyses, encounters limitations on causality. Advanced techniques, e.g. cause‐effect investigation with richer data, are hence necessary to validate the causal relationships between performance metrics and their drivers. This study focuses only on the supplier's side of the supply chain and its partnership in a specific industrial setting. Future research may consider studying the joint performance by supplier‐customer dyads in commercial partnerships with variations of partnering agreements.Practical implicationsPartnerships motivate trading partners to engage in higher level of coordination. Transactional hazards can be reduced and performance may improve under the partnering mechanism. The manufacturer may design the procurement partnership as a collaborative mechanism, thus helping a partnering supplier and itself to obtain increased mutual gains.Originality/valueThe paper provides detailed information of a unique case study of the partnership in a project‐type supply chain, which is relatively new in the literature. Research streams on supply chain management, project management, and principal‐agent theory are integrated to evaluate supplier performance. Empirical results confirm partnership impacts on suppliers' business performance.

Supply Chain Measures of Performance for Wood Products Manufacturing

This article reports the results from a supply chain study in which a performance measurement system for a wood products value stream was developed. We build on findings from a previous study in which the need for supply chain metrics of performance was identified. A five-step method to develop performance measures is suggested as an improvement alternative. Examples of specific metrics for quality and time performance are provided. This approach facilitates collaboration between supply chain partners and provides information that allows a more efficient focus on improvement projects. Supply chain measures of performance are important for seeing beyond a single entity and aligning strategy in the supply chain. Companies that want to integrate their suppliers and customers in their improvement efforts can benefit from the information presented here, because a common set of performance measures is essential in evaluating progress toward a goal.

Wrapping Our Brains around Sustainability

As many of us begin to embrace the concept of sustainability, we realize that it is not simply something that we ‘do.’ Rather, sustainability is a destination that we aspire to reach with the selection of the sustainable pathways that we choose as we proceed along the journey. We are embarking on a new journey with the creation of Sustainability, an on-line, open access journal. As stated on the journal’s website, Sustainability is an international and cross-disciplinary scholarly journal of environmental, cultural, economic and social sustainability of human beings, which provides an advanced forum for studies that are related to sustainability and sustainable development. To genuinely wrap our brains around the impact that our actions have on the sustainability of our planet, we must first understand something of the big picture and have a firm grasp of the terminology. To help further clarify the elusive term ‘sustainability,’ without attempting to provide an exact definition, this paper outlines various, inter-related concepts and basic practices and approaches that are being used in the name of sustainability, including: traditional end-of-pipe control strategies, life cycle, environmental sustainability, urban sustainability, industrial ecology, business sustainability, sustainable supply chain systems, sustainability indicators and metrics, green chemistry and green engineering, design for the environment, sustainable buildings, eco-tourism, and renewable and sustainable energy and fuels.

Supply chain best practices – identification and categorisation of measures and benefits

PurposeThis research aims to identify, categorise and compare supply chain measures and benefits listed in literature‐based case studies that were named as “best practices”.Design/methodology/approachThe research applies iterative triangulation which is a method used to build theories from existing case studies. Selected case studies collected by project partners are used as a source of secondary data. The paper applies various approaches to classifying supply chains as well as identifying the difference between measures proposed in the literature and those used by case companies.FindingsThe analysis of the selected sample of cases indicated that the most common measures were related to economic aspects and to operational level activities. There is a lack of shared supply chain measures at the inter‐organizational level, while social and environmental aspects are largely ignored.Originality/valueThe majority of the measures identified in the collected cases were economic (relating to cost, time, quality and customer). Metrics at an operational level dominate, while supply chain metrics are hardly used. Findings indicate that current performance measurement approaches do not generally include social and environmental issues, which are becoming increasingly important in business.