Supply chain performance measurement with customer satisfaction and uncertainties

Abstract

This paper describes a performance measurement system for the evaluation of efficiency and effectiveness in supply chain processes and the corresponding business processes, and for the continuous improvement of those processes. This is necessary because firms normally use performance measurement systems which are unaffected by supply chain improvements. In order to make this possible, new performance dimensions must be taken into consideration. Therefore, we will integrate additional measures for different types of business relationships and uncertainty (risks), especially as interest in supply chain risks and how to handle them has grown steadily in recent years. In this context, we shall also describe how to monitor and analyze supply chain processes. Furthermore, we shall discuss how supply chain risk management and the continuous improvement of supply chain processes can be supported by means of simulation.