How to measure the “value” in value chains

Abstract

Purpose

The purpose of this paper is to broaden the performance measurements of total supply chain performance.

Design/methodology/approach

A conceptual model is presented based on the balanced scorecard. The new model formulates a model for the tangible aspects that measure the success of the total chain which is then extended to incorporate the intangible value adding aspects to measure total value chain success.

Findings

A framework is presented showing the importance of intangible value adding aspects of the total value chain.

Research limitations/implications

Future research may address in depth research associated with the five key intangible aspects given in the current model.

Practical implications

The practical implementation of the required metrics in such a dynamic area as the supply chain industry needs to be focused on the aspects most required at particular times depending on the varying levels of market activities.

Originality/value

This paper provides a broader performance model than the balanced scorecard or any other framework currently used in the supply chain literature.

Citation

Barber, E. (2008), "How to measure the “value” in value chains", International Journal of Physical Distribution & Logistics Management, Vol. 38 No. 9, pp. 685-698. https://doi.org/10.1108/09600030810925971