Abstract

Supply chain performance measurement — the process of qualifying the efficiency and effectiveness of the supply chain. The aim of this study is to create a supply chain measurement framework for manufacturing industry, define what data should be measured and verify the measurement framework in the case company’s supply chain. The research approach is hermeneutic and the research was a qualitative, constructive single case study research. The case company operates in the steel industry and provides prefabricated products for customers. The case supply chain was defined to be one supply chain in a plant where prefabricated products are produced.

There is a review of the current understanding of supply chain management and literature related to supply chain performance measurement and the study creates a framework for supply chain measurement. This study presents the main theory framework of supply chain performance measurement. The key elements for the measurement framework were defined as time, profitability, order book analysis and managerial analysis. The measurement framework is tested by measuring case supply chain performance. The measurement framework is a valid framework for supply chain performance measurement in manufacturing industry.

It is stated that supply chain performance measurement is extremely important in developing supply chain. The measurement framework in this study offers guidelines for measuring the supply chain in manufacturing industry but the measurement framework could be used in different areas of industry as well.