Internal benchmarking for assessment of supply chain performance

Towards measuring SMEs performance amid the COVID-19 outbreak: exploring the impact of integrated supply chain drivers

Purpose

This study aims to explore supply chain disruptions during the COVID-19 pandemic in the small and medium enterprise (SME) sector in Oman. This study analyzes the impact on selected supply chain drivers – facilities, inventory, transportation and sourcing. It further intends to explore whether the supply chain challenges faced by the SME sector in Oman impact their overall performance.

Design/methodology/approach

This study follows the quantitative technique of structural equation modeling to examine the proposed hypotheses. Data were collected electronically from SME managers/owners/entrepreneurs. All items were adopted and measured using a five-point Likert scale. One hundred and four complete and usable responses were received and considered.

Findings

The data was analyzed using SPSS and PLS statistical software. The model has been supported empirically, and the results showed a significant relationship between supply chain drivers and SMEs’ overall performance in Oman, except for supply chain inventory. The results have demonstrated that the COVID-19 pandemic has affected the SMEs’ supply chain drivers in Oman and, consequently, their overall performance.

Practical implications

The results of this research can drive the development and implementation of a supply chain management strategy. This research will help policymakers induce the performance of SMEs affected by the COVID-19 pandemic. It would further enhance strategic sourcing and supplier performance considering the developed practices associated with the resource-based view.

Originality/value

The originality of the current study lies in its ability to empirically test two models within the Omani SMEs context while considering the supply chain drivers as a single variable or dividing it into four separate independent variables. This study would provide a preview for scholars for such empirical investigation and serve as a reference for policymakers and practitioners to maintain a management system of crises that may protect the SME supply chain drivers.

A relational analysis of drivers and barriers of lean manufacturing

Purpose

The purpose of this study is to categorize and analyse the drivers and barriers of Lean Manufacturing (LM) and subsequently, based on the structural model develop a house of lean management which will give an idea to the academicians and practitioners about the factors that are critical to implement lean practices in an organization.

Design/methodology/approach

A list of drivers and barriers was prepared based on the literature review and opinions from experts. Total Interpretive Structural Modelling (TISM) was utilized to build a structural hierarchy of the drivers and barriers of LM. The structural hierarchy was utilized to build the house of lean management.

Findings

Based on the hierarchy developed, the elements (drivers and barriers) of LM are classified into three groups: bottom-level, middle-level and top-level elements. To develop a house of lean management, bottom-level of elements were considered as a foundation, middle-level elements were considered as pillars and top-level elements were considered as a beam. Finally, foundation, pillars and beam of the house were used to support the roof (which is value to customers and profitability to firm).

Practical implications

The outcome of this research can assist researchers as well as practitioners to enhance the significant drivers and to reduce the impact of hazardous barriers for the better implementation of lean practices.

Originality/value

This research is a novel approach, as it visibly demonstrates both the drivers and barriers, examines the interrelationships among them in order and shows them pictorially as the house of lean management.

Measuring supply chain performance: the triple E model

Purpose

This work aims to measure the performance of an electric motors supply chain (SC) by using the Triple E performance measurement model to assess three performance dimensions simultaneously: efficiency, efficacy and environmental impact.

Design/methodology/approach

This research presents a real case of a Brazilian company as an example for applying the Triple E performance measurement model and the discrete-event simulation to assess the performance of an SC.

Findings

Performance measurements for the three dimensions were the following: (1) for efficiency, a high inventory cost in the SC, driven by the distribution center (DC) (49.7% total cost); an order cycle time operating with an average of 21.7 days and a logistic channel transport capacity of 88%; (2) for efficacy, a service level of 98% for all channels; (3) for environmental impact, the SC emits a total of 395,733 kg of CO2 annually, with the DC and the regional distribution center (RDC2) being the largest emitters.

Originality/value

This work allowed to measure the performance of an SC interface (manufacturing process, a DC and three regional distribution centers). It was possible to measure the inventory holding cost and out-of-stock inventory costs, order cycle time, SC service level, transport capacity utilization and CO2 emissions in the transportation process of each SC stage and the whole SC. This study can be used as a decision support guide for academics and practitioners to measure and improve the SC performance.

Developing integrated framework to measure performance of green supply chain management

Purpose

The purpose of this paper is to explore green supply chain management (GSCM) performance measures and to develop a framework for evaluating the impact of GSCM implementation on organizational performance.

Design/methodology/approach

This research develops a performance measurement framework by integrating GSCM enabler with GSCM performance measures criteria. These criteria are selected from literature review and expert opinion. This study proposes a fuzzy balanced scorecard – fuzzy technique for order preference by similarity to ideal solution-based methodology to evaluate the overall organizational performance. The empirical case study of an Indian automobile organization is conducted. Further, the proposed framework is tested with three Indian Automobile organizations and their results are compared with the case organization.

Findings

The integrated methodology offers an effective way to measure and benchmark the impact of the proposed GSCM performance measurement framework. The empirical results show that the output of the proposed model is consistent. Thus, the study contributes to the advancement of knowledge toward GSCM and its management for sustainability.

Research limitations/implications

This study is limited to the automotive sector; hence the outcomes may not be comprehensively applicable across different sectors. The results cannot be applied to other sectors with other product and process specificities.

Practical implications

It helps the practitioners to measure and improve the effectiveness of GSCM implementation.

Originality/value

This study is the generalized performance measurement framework and can be used to measure the performance for any type of organizations to benchmark one organization with the other or the group of organizations.

Improving SME logistics performance through benchmarking

Purpose

The purpose of this paper is to discuss the applicability of current benchmarking proposals for small and medium-sized enterprises (SMEs) and to suggest a condensed process for logistics benchmarking in SMEs.

Design/methodology/approach

The paper starts by outlining why the logistics function is of increasing importance for SMEs. It discusses the benefit of logistics benchmarking and typical SME restrictions in benchmarking. Available approaches to benchmarking are discussed and their weaknesses when applied to SME logistics benchmarking are analyzed. The paper develops a new benchmarking process framework for SME logistics benchmarking and reports findings of a case application in three German SMEs.

Findings

The paper suggests a conceptual framework for logistics benchmarking in SMEs. The framework was tested in three German case companies. Results suggest that the suggested process together with the employed benchmarking tools and templates provide valuable support for SMEs in a logistics benchmarking project.

Research limitations/implications

The conceptual framework developed has been tested in selected case companies only. Possible adaptations to specific industry needs or cultural differences need to be integrated.

Practical implications

The process framework developed provides practical guidance for SMEs that want to embark on a logistics benchmarking exercise.

Originality/value

The paper outlines weaknesses of current SME benchmarking approaches and provides practical support by outlining an adapted process together with specific implementation tools.

An environmental balanced scorecard for supply chain performance measurement (Env_BSC_4_SCPM)

Purpose

– Companies need to excel in many areas to achieve a competitive advantage. This, together with pressure imposed by regulators and customers regarding sustainability concerns, leads companies to address sustainability in an integrated fashion across all management processes. The purpose of this paper is to suggest a model for the assessment of the environmental performance of a supply chain, based on four perspectives used in the balanced scorecard. Performance indicators are proposed based on the literature, as well as on the ISO 14031 and GRI standards, and were validated by a panel of experts.

Design/methodology/approach

– Based on a literature review on models for environmental performance management a novel model to assess the environmental performance of the supply chains (Env_BSC_4_SCPM) is proposed. Data collected from the first tier suppliers of an automotive industry case study are used to test the proposed model.

Findings

– The model developed was tested in a case study company, showing it ability to benchmark the company first tiers suppliers and products. The model is also useful as a decision support tool to define actions to be taken in order to improve the global environment performance of the supply chain.

Research limitations/implications

– The proposed model was developed to evaluate the environmental performance of supply chains. Nevertheless, the case study only takes account of the first tier suppliers, due to difficulties associated to data collecting for the other elements in the supply chain. Widening the frontiers, the next phase may include the application of this model to second, third and lower tier suppliers, as well as the final customer. Improvements in the model could also include the construction of a composite index to measure the environmental supply chain performance.

Practical implications

– The paper provides a model that can be used by practitioners to evaluate the environmental performance of their supply chain and to decide on actions to be taken to improve it.

Originality/value

– As stated by several authors, there has been limited research conducted in the field of environmental evaluation of supply chains. This paper proposes a novel model for the environmental performance of the supply chain and tests it using industrial empirical data.

Benchmarking contract management process maturity: a case study of the US Navy

Purpose

– The purpose of this paper is to present the results of contract management process maturity assessments in the US Navy using a process capability maturity model. The maturity model is used to benchmark an organization’s contract management process maturity and to use the assessment results to develop a road map for implementing process improvement as well as knowledge-sharing initiatives.

Design/methodology/approach

– This is survey-based research on benchmarking contract management processes in the US Navy. A web-based assessment tool was deployed to US Navy contracting officers located at aeronautical systems, sea systems, and logistics support contracting agencies. The assessment tool consists of survey items related to the use of contracting best practices. The survey responses are then used to calculate the agency’s contract management process maturity level.

Findings

– The benchmarking results reflected higher maturity levels in the pre-award contracting processes (Procurement Planning, Solicitation Planning, and Source Selection), while lower maturity levels were reflected in the post-award contracting processes (Contract Administration and Contract Closeout). The research findings related to process capability enablers also reflected higher mean scores for the pre-award processes and lower mean scores for the post-award processes. These maturity levels and process capability enabler scores reflect the extent of the implementation of contracting best practices within the Navy contracting agencies.

Research limitations/implications

– This research uses a purposeful sampling approach designed to acquire data on organizational contract management processes. The assessment survey was administered only to qualified Navy contracting officers. The Navy contracting agencies are responsible for procuring billions of dollars in supplies and services in support of the Navy mission. Although the assessed contracting agencies procure different types of systems, supplies, and services, the contract management processes used are common to all Navy, Army, Air Force, and other US federal government agencies. The conclusions based on the analysis of these benchmarking assessments may be applicable to Department of Defense (DoD) and other government agencies.

Practical implications

– The findings suggest that benchmarking can be effective in measuring and improving contracting process capability within the Navy. Benchmarking contracting processes can have far-reaching effects throughout the DoD. The Under Secretary of Defense’s has mandated initiatives related to improving both pre- and post-award contracting processes. The use of these benchmarking assessments can be instrumental in tracking the achievements of these process improvement initiatives. Additionally, the US Congress is leading the push for auditability in procurement operations. By benchmarking and improving its contracting processes, the DoD will be winning the battle toward integrity, accountability, and transparency of its financial operations.

Social implications

– Benchmarking contracting processes can also have far-reaching effects in society. Many governments are focussing on integrity, accountability, and transparency in public procurement. International organizations such as Transparency International (TI) have identified process capability and process integrity as key for reducing the potential for procurement-related fraud, waste, and abuse. Additionally, NATO member countries and partner nations are focussing on the value of assessing and improving procurement processes for strengthening transparency and accountability. The value of benchmarking and improving contracting processes is gaining much attention in global public procurement agencies as they strive for accountability, integrity, and transparency in their governance processes.

Originality/value

– There are multiple reports on deficiencies in DoD’s contract management processes, identifying poor contract planning, and Contract Administration as just some of the critically deficient areas. In response, the DoD is increasing its emphasis on developing its workforce competence through education initiatives. However, very little attention is being paid to benchmarking contract management processes. This research reflects the value of benchmarking DoD’s contract management process maturity and using the results for implementing process improvement initiatives. Using process benchmarking data, agencies can identify process improvement initiatives that will ensure government tax dollars are spent in the most effective and efficient ways.

Benchmarking of TQM: the case of Hikma Pharmaceuticals company

Purpose

– The purpose of this paper is to gain a better understanding of internal benchmarking through the evaluation of quality management in two quality departments (Quality Assurance (QA) and Quality Control (QC)) in a pharmaceutical company by utilizing total quality index (TQI).

Design/methodology/approach

– In order to achieve the above-mentioned purpose a structured questionnaire was used to assess the gap between the ideal and current status of the quality management system. The mean differences between the current and ideal states for the eight critical factors were compared for the two departments using t-test.

Findings

– There is difference in the actual and ideal scores on three out of eight critical factors between the QA and QC departments.

Practical implications

– The internal benchmarking process which was applied in this case study can be applied in other pharmaceutical companies in order to improve the status of the quality management system and achieve competitive advantage.

Originality/value

– Benchmarking of total quality management (TQM) can improve the performance of organizations. The benchmarking tool used in this study TQI is an information technology-supported tool that helps managers assess a TQM program by enabling the cost-effective measurement of key organizational processes. TQI measures the ideal and actual quality management along eight critical factors synthesized by Saraph et al. (1989).

Benchmarking model of supplier development for an Indian gear manufacturing company

Purpose

– The aim of this paper is to propose a benchmarking model of supplier development (SD) for an Indian gear manufacturing company for its successful adoption and improvement in a continuous basis.

Design/methodology/approach

– Thirteen SD critical success factors (CSFs) are identified and classified into four categories through extensive literature review and discussion held with managers/senior engineers in different Indian manufacturing companies. The four categories are primary CSFs related to supplier, secondary CSFs related to supplier, CSFs related to manufacturer and CSFs related to both manufacturer and supplier. The interpretative structural modeling (ISM) approach is applied to the Indian gear manufacturing company for developing and analyzing structural framework of CSFs to propose a benchmarking model for SD.

Findings

– It is concluded that SD adoption should be carried out in four phases sequentially for the Indian gear manufacturing company. The first, second, third and fourth phase should sequentially focus on primary CSFs related to supplier; secondary CSFs related to supplier; CSFs related to manufacturer; and CSFs related to both manufacturer and supplier, respectively. The proposed benchmarking model has four phases (i.e. plan, analyze, implement and measure) and bifurcated into 12 steps to enhance the performance of CSFs.

Practical implications

– This paper provides a useful benchmarking model for successful adoption of SD in manufacturing organizations.

Originality/value

– This is one of the few studies to develop the relationship of CSFs for SD in general and its application to an Indian gear manufacturing company in particular. A benchmarking model for SD is also proposed having five phases and 12 steps. The findings of the proposed structural framework and benchmarking model for the Indian gear manufacturing company are discussed in detail and will serve as a guideline for successful adoption of SD in manufacturing environment.