Measuring supply chain performance: the triple E model

Abstract

Purpose

This work aims to measure the performance of an electric motors supply chain (SC) by using the Triple E performance measurement model to assess three performance dimensions simultaneously: efficiency, efficacy and environmental impact.

Design/methodology/approach

This research presents a real case of a Brazilian company as an example for applying the Triple E performance measurement model and the discrete-event simulation to assess the performance of an SC.

Findings

Performance measurements for the three dimensions were the following: (1) for efficiency, a high inventory cost in the SC, driven by the distribution center (DC) (49.7% total cost); an order cycle time operating with an average of 21.7 days and a logistic channel transport capacity of 88%; (2) for efficacy, a service level of 98% for all channels; (3) for environmental impact, the SC emits a total of 395,733 kg of CO₂ annually, with the DC and the regional distribution center (RDC2) being the largest emitters.

Originality/value

This work allowed to measure the performance of an SC interface (manufacturing process, a DC and three regional distribution centers). It was possible to measure the inventory holding cost and out-of-stock inventory costs, order cycle time, SC service level, transport capacity utilization and CO₂ emissions in the transportation process of each SC stage and the whole SC. This study can be used as a decision support guide for academics and practitioners to measure and improve the SC performance.

Citation

Simão, L.E., Somensi, K., Dávalos, R.V. and Rodriguez, C.M.T. (2022), "Measuring supply chain performance: the triple E model", International Journal of Productivity and Performance Management, Vol. 71 No. 7, pp. 2951-2969. https://doi.org/10.1108/IJPPM-06-2020-0291