Measuring supply chain performance: A framework for prioritizing measures

One could consider changing the expression “organisations compete on a market” to “supply chains compete on a market”. The reason for this is that most organisations are interested in reducing cost and increasing profitability. The need to evaluate the appropriate type of supply chain performance measure is therefore vital, as it can affect the decision-making process. The objective of this paper is to present a framework that identifies which performance measures and metrics should be prioritised in relation to the type of product manufactured and the type of supply chain using the product life cycle (PLC) approach. The framework presented consists of three descriptions of theories, which, when combined, provide valuable guidance for the prioritisation of performance measures. The three theories are: 1) type of supply chain, 2) type of supply chain performance measure; and 3) scope of measurement in the supply chain.