Performance measurement systems in supply chains

Cash and voucher assistance along humanitarian supply chains: a literature review and directions for future research

This study reviews research on cash and voucher assistance (CVA) by applying a humanitarian supply chain management perspective. A systematic literature review was conducted to identify, analyse, and synthesise past academic research. The content, context, and process framework was used to structure the content analysis. The findings reveal that the outcomes of CVA programmes are dependent on critical context-specific variables that influence feasibility and operability. Humanitarian actors must consider factors that are external (the nature of disaster, politics, economy, and infrastructure) and internal (local market availability and accessibility, supplier/donor interest, supplier/vendor selection and contracting, and beneficiary preference) to the supply chain. The delivery process is influenced by them, impacting on programme responsiveness and cost-efficiency. The results provide insights that humanitarian practitioners can utilise to reconsider their supply chain strategies when deciding on the selection and implementation of CVA programmes. Potential literature gaps are identified, and recommendations for further research are provided.

Evaluating interaction between internal hospital supply chain performance indicators: a rough-DEMATEL-based approach

Purpose

Previous studies on hospital supply chain performance have attempted to measure the performance of the hospital supply chain either by the measurement of performance indicators or the performance of specific activities. This paper attempts to measure the internal hospital supply chain's performance indicators to find their interdependencies to understand the relationship among them and identify the key performance indicators for each of those aspects of the logistics process toward improvement.

Design/methodology/approach

In this research, a systematic assessment and analysis method under vagueness is proposed to assess, analyze and measure the internal health care performance aspects (HCPA). The proposed method combines the group Decision-Making and Trial Evaluation Laboratory (DEMATEL) method and rough set theory.

Findings

The study results indicate that the most critical aspects of hospital supply chain performance are completeness of treatment, clinical care process time and no delay in treatment.

Originality/value

The causal relationship from rough-DEMATEL can advise management officials that to improve the completeness of treatment toward patient safety, clinical care process time should be addressed initially and with it, patient safety aspects such as free from error, clinical care productivity, etc. should be improved as well. Improvement of these aspects will improve the other aspects they are related to.

Airline catering supply chain performance during pandemic disruption: a Bayesian network modelling approach

Purpose

The supply chain (SC) encompasses all actions related to meeting customer requests and transferring materials upstream to meet those demands. Organisations must operate towards increasing SC efficiency and effectiveness to meet SC objectives. Although most businesses expected the coronavirus disease 2019 (COVID-19) pandemic to severely negatively impact their SCs, they did not know how to model disruptions or their effects on performance in the event of a pandemic, leading to delayed responses, an incomplete understanding of the pandemic's effects and late deployment of recovery measures. Therefore, this study aims to consider the impact of implementing Bayesian network (BN) modelling to measure SC performance in the airline catering context.

Design/methodology/approach

This study presents a method for modelling and quantifying SC performance assessment for airline catering. In the COVID-19 context, the researchers proposed a BN model to measure SC performance and risk events and quantify the consequences of pandemic disruptions.

Findings

The study simulates and measures the impact of different triggers on SC performance and business continuity using forward and backward propagation analysis, among other BN features, enabling us to combine various SC perspectives and explicitly account for pandemic scenarios.

Originality/value

This study's findings offer a fresh theoretical perspective on the use of BNs in pandemic SC disruption modelling. The findings can be used as a decision-making tool to predict and better understand how pandemics affect SC performance.

Lean and agile metrics. Literature review and framework for measuring leagile supply chain

Purpose

The aim of this paper is to review metrics and develop a framework for measuring leagile supply chain. Metrics that are applicable in the lean, agile and leagile strategies are identified in the literature and are then combined into a framework that can reflect both agile and lean strategies – the leagile supply strategy.

Design/methodology/approach

This work is based on the systematic literature review. Literature was collected, then lean and agile metrics were extracted, analysed, counted and grouped into the framework. Findings are compared against literature on leagile supply chain.

Findings

Findings indicate that there are sets of metrics specific to lean strategy, such as are process-focused, cost, productivity, inventory and delivery-based metrics, and specific to agile such as flexibility, responsiveness, information sharing and cooperation. There are also metrics common for both strategies; they are related to time, quality and customer satisfaction. Lean measures are tangible and focused on internal processes and products, while agile measures are targeted at external environment.

Practical implications

The framework could be used by practitioners as a starting point for performance system design.

Originality/value

There is a need to stop looking at lean and agile as separate and distinct supply strategies. Results of this research indicate that lean and agile are interlinked, both are focusing on customer satisfaction and quality. Applying a proposed set of metrics enables to design supply chain measurement system that reflects both strategies to measure leagile supply chain. The framework could be used by practitioners as a starting point for performance system design.

Performance Measurement Systems for Circular Supply Chain Management: Current State of Development

With circular supply chain management, the need arises to measure circularity as well as economic, environmental, and social performance. This places higher demands on performance measurement systems for circular supply chain management. The current paper studies the extent to which performance measurement systems for circular supply chain management can meet these higher demands. To gain this insight, a systematic literature review is conducted. Moreover, existing definitions of circular supply chain management are reviewed and an improved definition of circular supply chain management is developed. The current paper finds, among other things, that the literature on performance measurement systems for circular supply chain management is scarce. Moreover, most of the available performance measurement systems for circular supply chain management have not been tested in practice and are therefore still in an early phase of development. Furthermore, none of the available performance measurement systems for circular supply chain management meet the requirements for effective performance measurement systems. More specifically, including interdependencies between performance measures is a requirement that none of the performance measurement systems for circular supply chain management can meet. Including interdependencies would better support the complex decision making that arises in circular supply chain management and enable one to challenge strategic assumptions about the improvement of circularity, economic, environmental, and social performance in parallel.

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.

Towards a strategic innovation framework to support supply chain performance

Purpose

This paper aims to determine how a strategic innovation framework that integrates the concepts of innovation function, dynamic performance management (DPM) and system-dynamics (SD) modelling can measure performance in a supply chain (SC).

Design/methodology/approach

The paper provides a strategic innovation framework for an SC by considering three steps. First, a systemic intervention is presented based on the innovation functions that influence SC performance. Second, an analysis of the system's performance is proposed. Third, a model SD-based simulation is designed. The developed framework is explained by employing a case study of the Colombian pig sector SC.

Findings

The results reveal that identifying and synchronising the system's performance drivers associated with the innovation functions could improve the inventory in the SC.

Practical implications

On the one hand, managers can use the proposed framework to evaluate the innovation investments and understand their impact on operation performance (e.g. on inventories). On the other hand, policymakers may support decision-making to improve policy design (e.g. through investment in R&D).

Originality/value

Few studies discuss the impacts of innovation functions on SC performance. This paper aims to fill this theoretical gap and to contribute to the literature by suggesting a novel framework which includes innovation functions.

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.

Integrating performance measurement, system dynamics, and problem-solving methods

Purpose

Transport logistics systems in companies with additional public service roles are complex and could benefit from new approaches to performance management. Existing approaches tend to be fragmented; thus, the purpose of this paper is to integrate balanced performance measures, a dynamics model, and the problem-solving method into a new model.

Design/methodology/approach

An integrated framework is developed by reviewing literature and synthesising attributes of performance measurement systems, system dynamics and problem-solving methods. The framework is then applied to a multiple-role company’s sea transportation system. The study uses statistical methods to identify performance indicators, management interviews with document study to develop a dynamics model, and simulation methods to formulate an improvement plan.

Findings

The performance measurement design stage allowed for the identification of balanced, aligned performance indicators, while the system dynamics model illuminated the impact of the system components’ interrelationships on performance output. The problem-solving method allowed for analysis of system performance, identification of constraints and formulation of a performance improvement plan.

Practical implications

This framework can help transport logistics system stakeholders in multiple-role companies avoid silo thinking, misaligned performance objectives, local optima and short-term solutions.

Originality/value

This study contributes to the existing body of research by introducing a novel framework integrating performance measurement, system dynamics and the problem-solving method. It also addresses a theoretical gap by showing how interconnecting components of sea transportation systems affect transport logistics performance.

Humanitarian supply chain management frameworks

Purpose

The purpose of this paper is to examine and compare extant framework in humanitarian supply chain management (HSCM) and to propose a framework on humanitarian supply chain (HSC) performance measurement based on the content, context and process.

Design/methodology/approach

The structured keywords, namely humanitarian supply chain (HSC), humanitarian logistic (HL), humanitarian relief chain (HRC) and humanitarian chain (HC) as an exact phrase were searched in the title, abstract and keywords in the academic database. A total of 66 peer-reviewed articles were selected for analysis purpose that reports framework from the reviewed literature. These selected frameworks are categorized in dimensions, namely framework novelty, framework source, recognize elements/constructs of framework, comparative analysis of the framework and in-depth study of HSCM performance measurement.

Findings

The analysis reveals that the majority of these developed frameworks are novel and academic based. Case study is most prominent research methodology in the development of HSCM framework. Lack of coordination among humanitarian stakeholders is the major challenge in the empirical implementation of framework. This study proposes future research trend toward a unified HSCM framework that will facilitate to uncover the coherent set of elements/constructs in the field of HSCM.

Research limitations/implications

This study considers peer-reviewed articles published in English language, and excludes conference papers, working articles, technical data/reports and book chapters.

Practical implications

This study categorizes new dimension for framework analysis and proposed an HSC performance measurement framework which gives new insights to the academicians, practitioners and policy makers for future work.

Social implications

This examination gives the establishment to facilitate investigation of viable, efficient and effective HSCM, and detail opportunities for practices.

Originality/value

This study critically analyzes 66 frameworks under the different criteria to identify research gap and trends. Furthermore, this study proposes the HSC performance measurement framework.

An integrated AHP-based scheme for performance measurement in humanitarian supply chains

Purpose

In recent years, several performance indicators have been proposed in humanitarian supply chains (HSCs). Selecting the most relevant key performance indicators (KPIs) is challenging for some humanitarian organizations (HOs) because it involves a considerable amount of complexity and information overload which could lead to judgment biases in the decision-making process. Existing performance measurement studies lack critical analysis for prioritization of performance indicators. Since the process of KPIs selection and categorization is a complex, domain based and subjective process, a systematic guideline is needed. To address this gap, the purpose of this paper is to propose an integrated performance measurement scheme that can consolidate KPIs into an overall performance score based on the weighting of the performance indicators in HSCs.

Design/methodology/approach

Data collection was based on questionnaire surveys and direct interviews with practitioners from international HOs.

Findings

This paper proposes an integrated scheme based on balanced scorecard and analytic hierarchy process for performance evaluation of HOs.

Research limitations/implications

The respondents were limited to the humanitarian logistics experts from Malaysian-based international HOs.

Practical implications

The scheme enables the benchmarking of HOs’ performance that could be useful for decision makers in HSCs.

Originality/value

This paper provides the ranking and prioritization of KPIs in HSCs. The approach presented in this paper enables an effective and integrated performance measurement in HSCs.

Relational asymmetry, trust, and innovation in supply chain management: a non-linear approach

Purpose

The purpose of this paper is to examine the non-linear aspects of the asymmetry-performance relationship under varying conditions of trust and innovation. Its novel approach is useful for addressing the strategic elements of supply chain management (SCM) relationships based on trust and innovation decisions.

Design/methodology/approach

Results are based on a study of 90 managers from small- and medium-sized firms in Spain. Instead of a classical linear relationship analysis, the authors performed a non-linear analysis, using polynomial modeling and Warp 3 partial least squares method, which provides a more nuanced view of the data and constitutes an original approach to empirical research in SCM.

Findings

This study adds a new viewpoint on SC relationships by suggesting that not all trust and innovation development leads directly to performance improvement. The principal finding is, in varying trust and innovation contexts, that the influences of asymmetry on performance have uneven characteristics and follow non-linear paths.

Research limitations/implications

This study focuses on only one particular institutional environment in one country. The data are also cross-sectional, which makes it difficult to empirically test causality.

Practical implications

The findings provide rational insights to managers on when it is appropriate to reduce (or not) asymmetric relationships with partners.

Originality/value

Trust and innovation are important and ones of the key requirements of supply chain relationships in any environment, this study argues that the interactions of key SCM elements that drive members to better performance are more complex and non-linear.

Prioritizing warehouse performance measures in contemporary supply chains

Purpose

Due to the importance of efficiency and responsiveness measures rather than just efficiency measures, this research recognizes both measures when considering overall performance of warehouse operations. Thus, the purpose of this paper is to prioritize overall performance measures associated with warehouse operations in manufacturing, third-party logistics service provider and retail industry supply chains.

Design/methodology/approach

The study uses an integrated approach that involves the Q-sort method to group measures into four categories. Fuzzy analytical hierarchy process was then used to prioritize individual performance measures within each category and integer liner programming model was used to validate prioritized categories, using the judgment of multiple decision makers across three industries.

Findings

The result shows that the financial category is a dominating performance category in managing warehouse operations across all three industries selected. Within the financial category, cost of insurance accounted for 25 percent of total weight of the category, and is considered to be a powerful measure. The financial category is verified by multiple decision makers across three industries, as the most important performance category.

Research limitations/implications

As part of adopting the proposed methodology in practice, it needs to be guided by overall methodology appropriate for industry-specific contexts.

Originality/value

Key novel aspects of this study are to categorize warehouse operations measures and analyze their perspectives in different industries, understand dominant categories of warehouse operations measures in the contemporary supply chain and finally to explore to what extent current practices lead to achieving efficiency and responsiveness in the selected industries.

Moderated influence of return frequency and resource commitment on information systems and reverse logistics strategic performance

Purpose

Reverse logistics (RL) is a strategic instrument across industries. The rapid evolution of online marketplaces has led to frequent product returns with variations across diversified businesses. These marketplaces have caused potential losses due to fraudulent returns, hence requiring a commitment of resources to RL. With information systems (IS) playing a role in improved supply chain performance, the purpose of this paper is to analyse the impact of a conceptualized IS framework on achieving RL strategic outcomes, under the individual moderating influence of resource commitment (RC) and return frequency.

Design/methodology/approach

Data have been collected through a questionnaire from top to middle management executives managing the supply chain, logistics and IS. Moderated regression analysis was conducted on the collected sample using Hayes’ (2013) process modeling.

Findings

The study depicts that IS capability, IS for logistics, IS partnership quality and IS for value addition lead to RL strategic benefits. Also, return frequency and RC act as relatively strong moderators with a negative impact. When analyzed for the individual IS constructs, RC has a stronger moderating impact than return frequency.

Practical implications

The IS usage framework can be used effectively by practitioners for enhancing strategic RL performances depending on variations in committed resources and return frequency for individual industries.

Originality/value

The study proposes an IS usage framework for achieving enhanced RL strategic outcomes and emphasizes on the moderating role played by RC and return frequency for producing the results.

Supply chain strategies of manufacturers in Ethiopia

Purpose

The purpose of this paper is to test the supply chain (SC) strategies and the linking of SCs to SC strategies in line with Lee’s (2002) model.

Design/methodology/approach

The paper used an empirical survey of 134 large industries to test the hypothesis suggested and strengthens the existing theories.

Findings

Companies and SC measures are matched distinctively to their respective SC strategies.

Research limitations/implications

Even though the research is only one of the few on case considered, it is not without limitations. The benefits from matching SC measures to the SC strategies are not quantified. Besides, continental wise survey is needed to come with further improved theory.

Practical implications

Different SC types require typical SC measures in order to increase competitiveness. Linking SC performance to the respective SC strategy is compulsory.

Originality/value

The research can be considered the only one of the few in the continent in general and a case country in particular. It is also the first of the type in the world in testing Lee’s model as far as the authors’ knowledge concerns.

Gaining insights into the measurement of value in industrial service network

Purpose

Nowadays, maintenance companies form networks, where multiple organizations and actors can deliver value to the customers. Current literature does not take into account how the value created by the entire network can be measured. The purpose of this paper is to address this research gap by identifying how the value created by the maintenance network as well as the participating individual organization can be measured simultaneously.

Design/methodology/approach

The research has been carried out using the qualitative research approach. The findings of the study are based on literature search as well as research processes carried out in two maintenance service networks.

Findings

The study presents a framework and propositions on how to measure network value in maintenance services. According to the results, the network value can be measured from the following five perspectives: financial capital, i.e., savings or growth; end customer capital such as the end customer satisfaction and recommending customers; network capital, i.e., know-how development and learning; sustainable capital such as business continuity and environmental safety; and relationship capital, such as reputation and new contacts.

Originality/value

Despite the increasing amount of literature on performance measurement in networks, theory is still lacking that reflects the complexity and dynamism when value is delivered to customers through maintenance networks. Significant novelty of the research is based on combining network, service, and value perspectives in performance measurement.

Designing a performance measurement system for collaborative network

Purpose

The purpose of this paper is to examine how a performance measurement system (PMS) can be designed for a collaborative network and to identify which factors affect such a design.

Design/methodology/approach

This is a single-case study of a collaborative network. The data have been collected from semi-structured interviews conducted during 2008-2009 and after the design process in 2010 and 2012, respectively.

Findings

The research results present a five-step process model for designing a PMS for a collaborative network. The findings show that a participatory development style that enhances socialisation, the positive development of a network culture and an outside facilitator all have beneficial effects on the design process.

Practical implications

The practical contribution of this study is related to knowledge about the PMS design process for a collaborative network to support its measurement-related development projects. This knowledge involves the phases of such a process as well as the various factors supporting or hindering it.

Originality/value

The study presents a PMS design process for the case network, which can be utilised in other collaborative networks in a similar context. It also highlights the most essential practical experiences related to this process.

The value of strategy and flexibility in new product development

Purpose

– The purpose of this paper is to examine the relationship between strategy and flexibility in new product development, and the operational and financial performance in the supply chain context. The motives for conducting this research are to introduce the supply chain strategies and new product development flexibility (NPDF) as constructs that could have the potential to contribute to the success of supply chain performance. Based on the relational view of the firm, the authors propose that supply chain strategy is an antecedent of NPDF and can create value for the buying firm in terms of better financial and non-financial performance.

Design/methodology/approach

– The structural equation modeling approach was used to evaluate the proposed model and analyze hypothesized relationships. The analysis, based on data collected from 175 small- and medium-sized (SME) Canadian manufacturing companies.

Findings

– The analysis shows that there are direct positive effects from strategy on NPDF. The findings indicate also a direct positive association between NPDF and performance and showed that the total effect (direct and indirect) positively influenced performance.

Originality/value

– The literature did not reveal any study which attempted to examine strategy, NPDF, and performance in the supply chain context of SMEs. The current study fills this important gap in the literature.

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.

Propagation of risks and their impact on performance in fresh food retail

Purpose

– The purpose of this paper is to carry out structural analysis of potential supply chain risks and performance measures in fresh food retail by applying interpretive structural modeling (ISM).

Design/methodology/approach

– Inputs were taken from industry experts in identifying and understanding interdependencies among food retail supply chain risks on different levels (sourcing and logistics outside the retail stores; storage and customer interface at the stores). Interdependencies among risks and their impact on performance measures are structured into a hierarchy in order to derive subsystems of interdependent elements to derive useful insights for theory and practice.

Findings

– Using the ISM approach the risks and performance measures were clustered according to their driving power and dependence power. Change in/inadequate government regulations’ are at the bottom level of the hierarchy implying highest driving power and require higher attention and focussed mitigation strategies. Risks like lack of traceability, transport delays/breakdowns and temperature abuse, cross-contamination in transport and storage have medium driver and dependence powers.

Research limitations/implications

– The approach is focussed on food retail supply chains in the Indian context and thereby limits the ability to generalize the findings. The academics and experts were selected on convenience and availability.

Practical implications

– It gives managers a better understanding of the risks and performance measures that have most influence on others (driving performance measures) and those measures which are most influenced by others (dependent performance measures) in fresh food retail and also a tool to prioritize them. This kind of information is strategic for managers who can use it to identify which performance measures they should concentrate on managing the trade-offs between measures. The findings and the applicability for practical use have been validated by both experts and practicing managers in food retail supply chains.

Originality/value

– The work is perhaps the first to link supply chain risks with performance and explains the propagation of risks in food retail supply chains. It contributes to theory by addressing a few research gaps and provides relevant managerial insights for practitioners.

Supply chain integration, information technology, market orientation and firm performance in container shipping firms

Purpose

– The purpose of this paper is to use a theoretical framework (i.e. resource-based view) to investigate causal relationships between the supply chain integration, market orientation, information technology (IT) application and firm performance of container shipping firms in Taiwan.

Design/methodology/approach

– The data are collected from 124 container shipping firms in Taiwan. The methodologies used in the paper are exploratory factor analysis, confirmatory factor analysis and structural equation modeling.

Findings

– The findings indicated that IT application and market orientation positively influence supply chain integration. It revealed that IT-based and market-oriented firms more easily integrate market information related to partners, departments and customers. Further, supply chain integration and market orientation have a positive effect on firm performance.

Research limitations/implications

– Such a result indicated a market-oriented firm quickly responds to market information and competitors’ strategies; and thus, it would make effort to offer satisfactory customer services in dynamically fluctuating markets, and obtain better firm performance. Also, the integration provides higher operation efficiency and obtains an enhanced performance improvement.

Practical implications

– The results also indicated that firms are able to develop their market-oriented strategies through electronic information transmission and exchange platform. Based on the study’s findings, managerial strategies are proposed to improve firm performance.

Originality/value

– This paper clarifies the concept of supply chain integration, market orientation and IT application in the context of container shipping, and investigates the inter-relationship between supply chain integration, market orientation, IT application and firm performance and develop a conceptual model in the context of container shipping.

Zografos K, Harrison A. Developing a conceptual model for examining the supply chain relationships between behavioural antecedents of collaboration, integration and performance

Purpose

– The purpose of this paper is threefold: first, review the literature on the topic of behavioural antecedents of collaboration and their impact on supply chain integration and performance; second, lay the theoretical foundations and develop a conceptual model linking behavioural antecedents of collaboration, information integration, coordination of operational decisions and supply chain performance; and third, set out operationalisation considerations.

Design/methodology/approach

– A conceptual model with theoretical basis on Relational Exchange Theory (RET) and extant supply chain theory is developed as a causal model that can be operationalised using structural equations modelling (partial least squares) and a “single key informant” approach.

Findings

– Positive relationships between behavioural antecedents of collaboration (trust, commitment, mutuality/reciprocity), information integration, coordination of operational decisions and supply chain performance (efficiency, effectiveness) are hypothesised. RET provides adequate theoretical background that leads to the theoretical establishment of hypotheses between behavioural antecedents, supply chain integration and performance, which are worth testing empirically.

Research limitations/implications

– The ideas presented in this paper enrich the study of behavioural factors in supply chain management and their impact on supply chain performance, and may benefit researchers in the field. The paper also sets the scene (experimental design, measurement items) for the upcoming field research. The empirical part of the work will provide the necessary evidence for the validation of the established hypotheses.

Practical implications

– The proposed linkages may stimulate the interest of supply chain strategists towards more collaborative relationship management and affect their decisions on the behavioural antecedents of relationship formation and management. Moreover, the proposed model may help clarify how the integration of critical operational contingencies – information, operational decisions – can help achieve superior supply chain performance.

Originality/value

– The paper establishes a causal relationship between constructs which have not been researched (mutuality/reciprocity, coordination of operational decisions) or have been researched individually or in combination (impact of integration on performance, impact of collaboration on performance) but not in the proposed integrated way. It also addresses the challenge of lack of theoretical justification on the development of knowledge that will assist decision making in SCM/logistics and its integration into models, processes and tasks. Finally, by using RET in selecting of behavioural factors and establishing hypotheses, it adds to the body of knowledge concerning the use of interorganisational theories in supply chain relationships.

Performance measurement in humanitarian logistics: a customer-oriented approach

Purpose

– The purpose of this paper is to develop a performance measurement framework that takes into account the key stakeholders of the logistics departments or personnel in humanitarian organisations. It reflects their views and characteristics by adapting the balanced scorecard (BSC) to this environment. The key stakeholders are identified using the stakeholder salience framework by Mitchell et al. (1997).

Design/methodology/approach

– This is a conceptual paper based on a systematic literature review on stakeholders, customers and performance measurement in humanitarian supply chains.

Findings

– Beneficiaries are the customers that are the reason for the existence of humanitarian supply chains. Donors are the stakeholder group with the highest salience due to the greatest amount of power. Both groups have their own interests, creating a challenging environment for performance measurement. Standard business tools such as the BSC have to be adapted accordingly to be useful in this environment.

Research limitations/implications

– This paper is conceptual and the proposed framework is yet to be tested empirically.

Practical implications

– The proposed framework can help humanitarian organisations focus on the aspects of performance that are most relevant to their key customer groups.

Originality/value

– The research brings together the complexities of humanitarian supply chains with the increasing customer focus that can be seen in commercial service supply chains. Based on an assessment of stakeholder salience, the difference in key customer groups is analysed. The resulting framework provides indications for balancing their diverging needs.

Developing a sustainability index for companies’ efforts on responsible use of water

Purpose

– The purpose of this paper is to investigate an initial set of formative indicators to measure the level of efforts on sustainable use of water by companies from different sectors to eventually generate an index with a ranking of such companies.

Design/methodology/approach

– The authors started with unstructured data from an open-ended survey conducted by the Carbon Disclosure Project (CDP) on over 300 global companies. Using data from 158 of the companies in that survey from 27 different two-digit UK SIC codes, the authors devised the indicators, translated these into questions requiring response on a seven-point Likert scale, and then coded the companies’ response in the CDP survey for the questionnaire.

Findings

– First, all the questions were valid in that responses could be provided. Second, in open-ended surveys like CDP's survey, companies provided information only on selected dimensions and not on others. Third, across sectors, companies are putting more effort on usage efficiency relative to where the water comes from or where it goes after use.

Research limitations/implications

– The questions still require field-testing for validation and user acceptance.

Practical implications

– The proposed questions could become part of a survey for companies to self-assess or to disclose information on the sustainable use of water. An index created using disclosed data would motivate companies to make more effort towards sustainable use of water.

Originality/value

– The authors believe this to be the first effort towards formulating a sustainability index of companies’ use of water.

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.

Savings measurement for capital equipment purchasing: challenges and conceptual model

Purpose

– Many companies are not satisfied with the methods used to calculate savings for capital equipment purchasing (CEP), and the existing academic literature does not provide adequate suggestions for solving this problem. Therefore, the authors will aim to analyze how companies measure savings for CEP and attempt to identify the main challenges in this area. In order to understand which savings measurement system for CEP is appropriate in a specific situation, they will explore the relevant determinants and effects of savings measurement for CEP.

Design/methodology/approach

– After presenting a description of the theoretical foundations of CEP and savings measurement, the article presents three cases of savings measurement for CEP from manufacturing industry and pinpoints the major challenges involved. These challenges are then discussed with reference to the relevant literature and a conceptual model for savings measurement for CEP is developed.

Findings

– The authors identify six procedure-specific and seven behavior-specific challenges. Procedure-specific challenges in savings measurement for CEP primarily address topics concerning components and calculation methods, while behavior-specific challenges mainly involve manipulation, trust and judgment. The authors’ formulated propositions state that savings measurement for CEP is influenced by internal and external determinants and affects CEP's performance, manipulation and trust, as well as judgments which may be made about CEP's savings measurement results.

Practical implications

– The managerial implications of the authors’ research concern the successful design and process of savings measurement for CEP.

Originality/value

– Savings measurement for CEP, as a special case of purchasing performance measurement, has received little attention in the academic literature. Thus, the authors will present calculation methods, along with identifying and discussing challenges and revealing relevant determinants and effects.