A framework for designing the balanced supply chain scorecard

A proposed circular-SCOR model for supply chain performance measurement in manufacturing industry during COVID-19

Purpose

COVID-19 is a global event affecting supply chain operations and human health. With COVID-19, many issues in business models, business processes and supply chains, especially in the manufacturing industry, have had to change. The ability to analyze supply chain performances and ensure circularity in supply chains has become one of the factors whose importance has increased rapidly with COVID-19. Therefore, it aims to determine which supply chain performance criteria come to the fore for the company under consideration to accelerate the transformation into high performance and circularity in supply chains.

Design/methodology/approach

In this study, a new circular-SCOR model is proposed, and 17 supply chain performance measurement criteria are prioritized for a manufacturing company in the context of circular economy principles during COVID-19 by using stepwise weight assessment ratio analysis and analytical hierarchy process method, separately.

Findings

As a result, for both methods, in the case study discussed, the demand fulfillment rate is determined as the most prominent criterion in line with the circular economy principles in the COVID-19 period in manufacturing supply chains.

Originality/value

It is expected that this study will contribute to managers and policy makers as it addresses the “new normal” that started after COVID-19 and the criteria to be considered in supply chain performance measurement and emphasizes the need to adopt circular supply chains, especially in manufacturing industries.

Analysis of supply chain operations reference (SCOR) and balanced scorecard (BSC) in measuring supply chains efficiency using DEMATEL and DEA techniques

Purpose

The strategic management of the supply chain encompasses the development and integration of a supply chain strategy and the evaluation of the findings. An integrated approach is required for linking the supply chain strategy with the overall strategic management of the company for it to be successful. In this regard, this paper aims to examine and compare the relative efficiency of two models, namely, supply chain operations reference (SCOR) and the balanced scorecard (BSC) for measuring the supply chain performance.

Design/methodology/approach

A quantitative research design is used and 800 individuals were recruited from the industrial sector in the Eastern Province of Saudi Arabia. A three-tier model was used based on BSC, data envelopment analysis (DEA), decision-making trial and evaluation laboratory (DEMATEL).

Findings

The findings have indicated that DMUs 2, 4, 6, 7, 9, 11, 13 and 15 were efficient, while the other DMUs were non-efficient. These non-efficient units were not aware of the training and development and learning and growth. The concern presents comparatively poor performance of employees at this stage even this issue was based on system performance and indifference of managers, establishing complexities in the long-term system. The relationships were determined among four dimensions of BSC by identifying the supply chain metrics and applying the DEMATEL approach.

Originality/value

The current study provides empirical support for the DEA network model concerning its preference and improved performance measurement as compared to BSC model.

Proposal for a Maturity Model in Sustainability in the Supply Chain

Sustainability has become a relevant element for organizations due to several motivators: companies adopt sustainability practices in need for regulatory compliance, anticipation of regulatory changes, understanding of limited natural resources, and a desire to limit expenditure associated with resource consumption and waste disposal. Thus, this article aims to identify the gaps present in maturity models, present an integrator theoretical model that considers the characteristic elements of the models present in the literature and affects the level of maturity in sustainability. The construction of the integrator theoretical model was based on the following stages: research questions; theoretical framework on Supply Chain Management; sustainability and concept of maturity model; maturity models and performance measurement systems; interpretation/analysis of research; and construction of the integrator theoretical model. The literature review was carried out in the Scopus and Web of Science databases. The main conclusions: maturity models focus on only one aspect or are excessively broad and do not include in detail the elements necessary to measure the level of maturity in sustainability. The proposed model aims to mitigate these gaps with the addition of the cross-sectional dimension, which offers an integrated and holistic view in relation to the other dimensions.

Development of IoT based data-driven agriculture supply chain performance measurement framework

Purpose

Performance measurement (PM) of any supply chain is prerequisite for improving its competitiveness and sustainability. This paper develops a framework for supply chain performance measurement (SCPM) for agriculture supply chain (ASC) based on internet of things (IoT). Moreover, this article explains the role of IoT in data collection and communication (SC visibility) based on the supply chain operation reference (SCOR) model.

Design/methodology/approach

This research identifies various key performance indicators (KPIs) and also their role in SCPM for improving its sustainability by using SCOR. Further, Shannon entropy is utilized for weighing the basic processes of SCPM and by using weights, fuzzy TOPSIS is applied for ranking of identified KPIs at metrics level 2 (deeper level).

Findings

“Flexibility” and “Responsiveness” have been reported as two most important KPIs in IoT based SCPM framework for ASC towards achieving sustainability.

Research limitations/implications

In this research, metrics are explained only at SCOR level 2. But, this research will guide the managers and practitioners of various organizations to set their benchmark for comparing their performance at different levels of business processes. Further, this paper has managerial implications to develop an effective system for PM of IoT based data-driven ASC.

Originality/value

By using IoT based data driven system, this article fills the gap between SCPM by measuring different SC strategies in their performance measurable form of reliable, responsive and asset management etc.

Performance measurement for supply chains in the Industry 4.0 era: a balanced scorecard approach

Purpose

The purpose of this paper is to present a theoretical approach based on the balanced scorecard (BSC) with regard to performance measurement – PM in supply chains for the Industry 4.0 era.

Design/methodology/approach

This paper combines the literature of PM and specifically the BSC with the literature related to the dimensions of supply chain in the context of Industry 4.0.

Findings

Dimensions extracted from the literature based on supply chains within the context of Industry 4.0 showed a strong alignment with the four perspectives of the BSC, which make it suitable to be considered as a performance measurement system (PMS) for supply chains in this new context.

Research limitations/implications

From theoretical perspective, this study contributes to the limited literature on PM for supply chains in Industry 4.0 era. The study proposes a supply chain 4.0 Scorecard and strongly support researchers to conduct future empirical researches in order to get a deeper understanding about PM in supply chains in the Industry 4.0 era. As limitations, the theoretical framework proposed needs further empirical research in other to validate it and obtain new insights over the investigation conducted and presented into this paper.

Practical implications

Practitioners can use this study as a guide to develop more effective performance measurement systems – PMSs in their organizations.

Originality/value

This research is unique as it addresses a significant knowledge gap related to PM in supply chains in the Industry 4.0 era. It brings a significant contribution in terms of understanding how to measure performance in supply chains in this new era.

Performance analysis and strategic planning of dairy supply chain in Indonesia

Purpose

The purpose of this paper is to measure and evaluate the performance of the relationships between farmers, dairy cooperatives and industrial milk processors.

Design/methodology/approach

Data used in this study were primary data collected through personal interviews and closed questionnaires with 1–5 Likert scale. The sample consisted of the representative of the management of 12 dairy cooperatives located in Central Java Province, representative of the management of 12 dairy cooperatives located in West Java Province and some farmers who are members of those dairy cooperatives. This study uses balanced supply chain management scorecard for measuring the performance of dairy supply chain, importance-performance analysis (IPA) for identifying the indicators that are most in need of improvement, and strength, weakness, opportunity and threat (SWOT) analysis for formulating strategic planning.

Findings

The results of balanced supply chain management scorecard combined with IPA analysis showed that the performance relationship between farmers, dairy cooperatives and industrial milk processors in West Java Province is slightly better than that in Central Java Province. It can be seen from the average value of the score of indicator, the category of each indicator and the category of the performance index of each relationship. The major weakness of the relationship between dairy farmers, cooperatives and industrial milk processors in Central Java Province lies in the different perspective (no perspective is dominant), whereas that in West Java Province is dominated by the perspective of the customer. On the other hand, the major strength of the relationship in Central Java Province is dominated by the perspective of the customer, whereas that in West Java Province is dominated by the perspective of learning and growth.

Research limitations/implications

The limitation of this study is related to the number of the dairy cooperatives as the sample and the type of scale used to measure the performance of the relationships between farmers, dairy cooperatives and individual milk processors. So, the future research may replicate this study by surveying all the dairy cooperatives in Central Java and West Java Provinces. It may also enhance the measurement of the performance of the relationships by using a direct measure of each indicator in each perspective, rather than recording the management of dairy cooperative perceptions.

Practical implications

This research provides essential insights for the management of dairy cooperative in the context of strategic planning development. The research reveals that there is a different strategic planning for improving the performance of the relationship between dairy farmers, cooperatives and industrial milk processors in each province. It depends on the major weakness and strength of the relationships, and also, opportunity and threat faced by the dairy industry. One important thing, the management of dairy cooperative in both provinces should have strategic planning related to the use of machine milking by farmers to improve the milk quality.

Social implications

The research revealed that strategic planning could be built after analyzing the internal and external conditions carefully. It may encourage more dairy cooperatives to measure and analyze the internal and external conditions at the bottom of strategic planning of their business.

Originality/value

Although this research only used the balanced supply chain management scorecard and IPA analysis for measuring the performance, and SWOT analysis in formulating the strategic planning for improving the current performance, it will make a difference. First, instead of measuring the performance of dairy cooperatives, this research measured the performance of the relationships between dairy farmers, cooperatives and industrial milk processors. This way, the dairy cooperatives were only sources of data collection. Second, the investigation was quite complicated since the objects of the research were represented by the relationships between farmers, dairy cooperatives and industrial milk processors in Central Java Province and West Java Province.

Performance measurement and metrics in supply chains: an exploratory study

Purpose

– The purpose of this paper is to explore the approaches and metrics used to measure supply chain (SC) performance, and to understand the relative perceived importance of such measures.

Design/methodology/approach

– This research is based on empirical data captured through a survey of SC professionals in a variety of business sectors.

Findings

– The research confirms the importance of the balanced scorecard (BSC) approach, with BSC, SCOR and economic value added being the most commonly used tools. Economic metrics dominate, focused on cost and customer service. While social and environmental-related measures are of emerging importance, they appear to be of similar importance to economic metrics only when backed up by a legal obligation.

Research limitations/implications

– The small sample of 51 companies was based on access and the group is not wholly representative of all businesses. Respondents were mainly managers from EU countries involved in procurement, logistics and transport activities. Surveyed companies included manufacturing, automotive, retail, logistics services and wholesaling businesses.

Practical implications

– The common key performance indicators (KPI’s) are identified. These include measures related to: quality, efficiency, responsiveness, health and safety, employees, emission, natural resources utilisation, waste and recycling. Issues that influence the usage of measurement systems as well as the company and SC levels are ranked.

Social implications

– Implementation of a monitoring system and subsequent usage of the collected data may help to reduce negative external impacts on society and the environment.

Originality/value

– The field of SC performance management is still developing, with growing empirical work. Nevertheless this paper is one of the first attempts to carry out such an analysis focused on metrics and their usage. The survey instrument has been tested and can now be applied to other contexts.

Modelling the measures of supply chain performance in the Indian automotive industry

Purpose

– The purpose of this paper is to investigate the interactions among the key factors of supply chain (SC) in the Indian automotive industry. These key factors are helpful to measure supply chain performance (SCP) and to improve the firm’s effectiveness.

Design/methodology/approach

– In this paper, an interpretive structural modeling with a fuzzy cross-impact matrix multiplication applied to classification-based approach is used to examine the interactions among the key factors of SCP measurement.

Findings

– The authors have identified the most dominant key factors used for measuring the performance in automotive SC. The results exhibit that the order lead-time and order entry method are the most significant key factors. These key factors have high driving power to measure SCP whereas the post-transaction measure of customer service and customer query time are highly dependent on other factors. Such relationships among the key factors can help a firm’s top management to make essential judgments in order to solve the overall SC problems and provide a better approach to proactively deal with problems.

Originality/value

– In this paper, the authors have explored the interactions among the key factors of the SCP in the Indian automotive industry.

Balanced scorecard metrics and specific supply chain roles

Purpose

– The overarching question here is whether common balanced scorecards (BSCs) are possible between partners in supply networks. The purpose of this paper is to form four independent samples of Brazilian input suppliers, producers, distributors and retailers from the agri-food industry to identify how many of the metrics used in BSCs can be related to specific supply chain (SC) roles.

Design/methodology/approach

– A survey of 121 agribusiness companies was undertaken. Usage of indicators was identified through percentages, while the groups of performance indicators for the SC roles considered were identified through two reference values.

Findings

– Customer satisfaction was the single metric present within the BSC framework for all SC roles. Different SC roles showed different compositions of indicators used.

Research limitations/implications

– The research findings are descriptive and based on responses provided by senior managers. A new perspective of the use of specific performance metrics by different SC participants is seen.

Practical implications

– Performance measurement within SCs needs to consider the specific measures used by different roles within the SC. The data suggest that any implementation of performance measurement systems for supply networks should consider performance indicators that are common to the role-type and specific to the constituent companies.

Originality/value

– The findings contribute to the debate on whether a common set of measures in a scorecard can be used between SC partners. The findings suggest that it may be very difficult to achieve a BSC framework that is common and practical for all SC participants and that other alternatives should be investigated.