Effectiveness of performance measurement framework on manufacturers supply chain – case of Saudi Arabia

Abstract

Purpose This study aims to provide a collaborative supply chain system using a combination of two already existed methods, i.e. levels of decision-making and supply chain operation reference (SCOR). Design/methodology/approach A two-phase methodology was conducted based on field analysis and survey analysis. Field analysis included a critical analysis of literature related to supply chain performance measurement and identified related indicators. Findings In a survey analysis, a questionnaire was developed to test the established indicators from managers and employees of manufacturing companies. It formulated a novel model for the performance measurement of the supply chain (SC) which included 4 factors (customer, efficiency, flexibility and product), with a total of 31 sub-components. Originality/value The structure provides a tied horizontal (SCOR) and vertical (progressive decision) in relation to the features that characterize the SC performance. This system enables the decision-makers to make decisions at the strategic, tactical and operational levels. It reflects the performance measures reliability, authenticity and its application in various SC. It also improves communication with the regional party while ensuring a preventive schedule for maintenance.