Supply Chain Performance and Evaluation Models

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Help in Choosing Supply Chain Performance Evaluation Models

3.1. Introduction

The aim of this chapter is to suggest a grid for choosing between existing models for evaluating supply chain performance, enabling decision makers to better understand the various models.

First, we will describe 15 commonly used supply chain performance evaluation models, taking as our basis experience of these models in the context of different chains. We will characterize these using eight analysis criteria, showing how these models can be used by those in charge of companies to better evaluate their own supply chain organization. Through this characterization, we will see the possible shortcomings of these various models, in particular regarding accounting for value created throughout the chain.

Performance evaluation models should be suited to the organizational design models, relevant for evaluating a performance that aims toward the value creation objectives, and should be easy and quick to implement for all actors. These performance evaluation models should also take value creation throughout the chain into account (Figure 3.1).

Figure 3.1. Global value creation throughout the chain

With supply chain management, there are several reasons why it is necessary to evaluate a company's supply chain performance, on a local, international or global level. The most obvious of these are linked to the ...