Developing framework for supply chain management excellence

Abstract

Companies today believe that Supply Chain Excellence is the best driver of bottomline performance. (Krivda, 2005) And companies that excel in supply-chainoperations perform better in almost every financial measure of success. For examplemajority of companies that have adapted their supply chain to the strategicrequirements of their product portfolio achieve a return on assets (ROA) that is 4 to 5percentage points higher than at companies with no supply chain adjustment.1 Thereare many factors considered critical for SCM success. This study is concentrating onarrival at a framework to measure the effectiveness of the supply chain as abusiness process.There are several parallel processes which define and benchmark SCM processes,like the balanced score card, AMR – Gartner studies. Several papers have beenpublished on the same lines to identify the factors contributing to the effectiveness ofthe supply chain in an organization or for its business. The study undertaken in thispaper is much more precise concentrating on the development of a framework forthe analysis of the effectiveness, which could be used for the purpose of presentingawards of excellence in Supply Chain Management Excellence.We want to undertake this study,“to identify the main issues involved while defining SCM Excellence and to develop asuitable model with standard performance metrics that can be applied to judgepotential candidates for an award in supply chain management excellence.”