State of the art of Supply Chain Performance Measurement in Danish industrial companies

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State of the art of Supply Chain Performance Measurement in Danish industrial companies

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Title: State of the art of Supply Chain Performance Measurement in Danish industrial companies
Author: Algren, Casper; Kotzab, Herbert
Abstract: Purpose: We have examined which dimensions are used by the largest Danish manufacturing companies to measure SCPM at operational, tactical and strategic level, how can these dimensions be classified, and how do these empirical results have implications for practice and selected SCPM-theories. Design/methodology/approach: A deductive structure based on a theoretical framework was used to design an empirical investigation of 54 Danish manufacturing companies, which all have revenue of more than DKK 500 million. Furthermore, qualitative investigation was done by analyzing four casecompanies in order to get a more in-depth picture of how SCPM is used in practice. Findings: The four most used SCPM metrics have downstream focus. Companies that use SCPM have a more deliberated split between metrics with focus on operational, tactical and strategic level. While the quantitative data indicates that non-financial measurements are most frequently used, the qualitative data implies that the companies use financial measures as basis for performance measurement and that results from non-financial measures have second priority. Research limitations/implications (if applicable): The model is limited to large Danish industrial companies and we propose to widen the model to upstream and downstream supply chain partners. Practical implications (if applicable): The paper shows the most important and most frequently used supply chain relevant key performance indicators as well as a process model of how to implement supply chain performance measurement in a company. Original/value: This paper closes the gap between theory and practice within the area of performance measurement and management within the context of supply chain management. The proposed SCPM model has been theoretically developed and empirically validated.
URI: http://hdl.handle.net/10398/8331
Date: 2011-08-10
Notes: The 23rd Annual NOFOMA Conference 9–10 June 2011, Harstad, Norway

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