ABSTRACT
Efficient supply chain management must lead to superior performance of the business. In fact, it should significantly improve firm’s productivity and competitive advantage. But there have to be some internal measures to determine the real performance of SCM practices followed by a business. These include cost, customer service and quality. In addition, there should be external performance measurements determined by customer perception measurement and also by benchmarking with best in class. Corporations implement robust performance management system by differentiating in areas like strategy, processes, alignment and continuous improvement as well as deploying technology for improvement in key performance indicators of supply chain. Some indications like inefficient resource allocation leading to sub-optimal SCM performance would suggest that actions are necessary to improve SCM performance. There are several models and methods available to track the SCM performance. A suitable model or framework should be adopted by the industry which can help at strategic, tactical and operational levels of the businesses. Corporations also track the maturity models in performance management to know where they stand to understand what is required to further improve.
