Performance measurement of supply chains

Abstract

SAP India has developed a tool for Supply Chain Performance Measurement. The tool is modelled based on the SCOR model for performance measurement. This tool can be used to monitor and manage multiple modules of a Supply Chain inside a firm. In this study, the features of this model, the actions which can be performed with this tool and the limitations inherent in using this model were studied. The focus of Supply Chain Management is shifting beyond a single firm to the integrated control of multiple firms in a value chain. The decisions made by one firm with respect to its operations also affect the performance and operations of its suppliers, channels and customers. The focus of this study is to analyse the issues in Supply Chain Performance Measurement due to factors external to a given firm and also to measure the effects of its decisions on other firms. These effects also need to be accounted for in Performance Measurement tools in order to reduce the managerial attention and time required to address these in a Supply Chain. Consequently, issues of this nature were identified, studied using examples from industry and existing literature and listed in order that appropriate features to manage the same be incorporated in the tool being built by SAP India