Measuring downstream supply chain performance

Downstream supply chain (DSC) performance metrics provide a standard framework to assess internal performance. DSC performance metrics can also help balance performance tradeoffs among firms. The purpose of this paper is to develop a survey instrument to determine whether observed performance metrics correspond to the literature and to determine if performance metric systems are used to improve inter‐firm performance.

The survey instrument used in this study was based on SCOR performance attributes consisting of: delivery reliability, responsiveness, flexibility, costs, and asset management efficiency. The survey was completed by 73 members of the Council of Supply Chain Management Professionals (CSCMP) consisting of high‐level managers representing US companies.

One factor explained the underlying one‐dimensional structure of the surveyed Supply‐chain operations reference (SCOR) model as an internal metrics system but the authors did not find convincing support for the notion that external performance metrics are used to coordinate external, DSC inter‐firm activities.

A larger sample size would have allowed more insight into the inter‐relationships of the performance attribute variables. Moreover, the sampling plan limited generalization beyond US firms.

Firms used a standardized performance metric system and did not “pick” among metrics. In addition, firms used metrics independently of the decision to coordinate DSC activities. Perhaps they first learn to coordinate the internal performance and later extend to DSC members.

The paper describes one of the few empirical studies of the SCOR model in US industry.