Supply Chain Performance Measurement For
Supply Chain Performance Measurement For
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BUSINESS ISSUES, COMPETITION
AND ENTREPRENEURSHIP
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Preface ........................................................................................ ix
Acknowledgments ...............................................................................xvii
Chapter 1 Analysis of Specific Agricultural Commodity
Supply Chain Modelling in Indonesia ......................... 1
Syarif Hidayat, Iphov Kumala Sriwana
and Nunung Nurhasanah
Chapter 2 Supply Chain Performance Measurement
for Manufacturing Industry ....................................... 27
Ferdoush Saleheen and Md. Mamun Habib
Chapter 3 Supply Chain Management Efficiency:
Focus on Indian Fruits
and Vegetables Markets ............................................. 55
Nair B. Chandrachoodan and R. V. Bindu
Chapter 4 Supply Chain Management
and COVID-19 Pandemic: Some Thoughts .............. 81
A. F. M. Ataur Rahman
Chapter 5 Supply Chain Management Framework
for Ready-Made Garments Industry:
A Bangladesh Perspective .......................................... 95
Md. Farhan Shahriar and Md. Mamun Habib
chain management, which are at the core among all the features. Supply
chain management is a multidimensional approach and it is even more
complex for the Bangladesh ready-made garments industry due to different
actors of the global supply chain like price, process and lead time. As
different parties i.e., the suppliers, manufacturers, distributors, retailers
and buyers etc. are involved in different phases of the supply chain of this
industry, every stage (procurement, manufacturing, replenishment,
customer order) is conflicting with its next stage due to time and process
constraints. The conceptual model demonstrated here has taken an effort
to create the layout and design of the procurement of raw materials, work-
in-process, inventory and finished goods from various sources to the
ultimate consumer in the garment business. The model also takes an
attempt to show that the manufacturing costs can be reduced and profit can
be increased if the supply chain information and integration process can be
used carefully. This framework provides the opportunity to integrate and
optimize the supply chain process of the ready-made garments industry of
Bangladesh. The proposed conceptual framework for the ready-made
garments industry provides a novel approach for decision-makers of
supply chain components to review and appraise the performance toward
fulfillment of ultimate goals, i.e., producing high-quality garments
product, reducing the wastage of human labor, time and money with high
competitiveness, efficiency and productivity.
Chapter 6 - The COVID-19 pandemic that out broke out in late 2019
has interrupted supply chains across the globe. However, the most
prominent disruptions have been experienced in healthcare supply chains
(HCSC). Hospitals globally have been overwhelmed in their efforts to
manage the flow of COVID-19 positive patients with their limited
resources of required medicines, equipment, testing kits, protective gear as
well as healthcare professionals themselves. Moreover, the supply of these
resources was disrupted due to government-imposed travel restrictions,
lockdown measures, and the temporary closure and/or underutilization of
suppliers’ facilities due to labor and raw materials’ shortages. A large
number of healthcare professionals were falling sick, which created further
pressure on the healthcare service delivery chain. Scholars, policymakers,
and practitioners across the world have proposed and developed a number
of innovative ways to combat the aforementioned situation, which also
serve as important lessons for the future. This paper is a review of literature
focused on the impacts of the COVID-19 pandemic on healthcare supply
chains. It attempts to identify key lessons learnt from the journey to date,
and offers recommendations to tackle similar future disruptions. The
researcher reviewed the findings, analysis, and recommendations from 30
relevant research papers published since December 2019 for this study.
Thematic analysis revealed five broad themes: 1. Surge in sudden demand;
2. Virus containment measures 3. Further demand flight; 4. Supply chain
disruptions; and 5. HCSCs responses. Recommendations are derived from
HCSCs’ experiences, and responses to the pandemic and required
interventions suggested in the literature. Practitioners and policymakers
can use the findings of this paper as a guide when tackling similar
situations. Moreover, some of the paper’s findings may trigger a number
of fundamental changes in the healthcare supply and service delivery
chain. The paper also disseminates new perspectives of HCSCs.
Chapter 7 - The COVID-19 pandemic is having an impact on global
supply chains with the sudden lockdown of cities or countries hampering
the whole business activity except the most critical of supply chain
activities. In this situation, total supply chain activities can’t be hampered
as livelihoods totally depend on this functionality. Thus looking for more
flexible, automated and sophisticated supply chain technologies that are
now more relevant than ever. This pandemic situation helps to rethink the
supply chain leaders in a different way for the successfulness of the Supply
Chain activities. As this pandemic is not going away so early, challenges
like sourcing, locational issues, logistical advancements, technological
upgradation and stock level buffering, all of these are playing vital role/s.
These challenges combined with ongoing price and trade wars, diplomatic
relationships among countries, shifts in manpower for manufacturing and
competitive advantage will make dynamic and flexible remarks of success
looking forward. To stay ahead of global supply chain challenges, leaders
must concentrate on re-skilling the workforce, re-assessment of risk
management in depth of the supply chain process for the successful and
uninterruptable management in this ongoing COVID situation and so on.
Chapter 8 - This research is intended to examine the relationship
between Efficiency (EF), Performance (PE), Response (RE), Quality
(QU), Facility (FA), and pandemic business management (PBM) in the
F&B (Food & Beverage) retail industry in Bangladesh. In total, 309 valid
responses were received through the survey questions asked at the retail
companies in Bangladesh. In addition, systematic random sampling is used
to achieve the research objectives of this study. The data has been
examined through Partial Least Squares Structural Equation Modeling
(PLS-SEM). The study findings showed that Efficiency (EF), Performance
(PE), Response (RE), Quality (QU), Facility (FA), and pandemic business
management (PBM) (dependent variable) have an influence on the F&B
retail business industry in Bangladesh. Future researchers may replicate
the findings of this study in different settings (e.g., developing nations), in
various industries (e.g., manufacturing, electronics, and health) and then
utilize analogous constructions to enhance the body of knowledge, which
may help different stakeholders and industries. This work contributes to
the limited body of literature on pandemic business management.
According to the authors, the findings may help to understand the effect of
the pandemic on the retail business industry. Furthermore, it may also help
to identify the essential aspects that can have an impact on the retail sector
in the post-pandemic environment.
Chapter 9 - Globalization has turned modern business more
unpredictable and challenging. Customers can now order and collect goods
from any corner of the world within a very short time. In the past, mass
production was the key concern in order to keep the cost low. At present,
frequent change in customer preference has made the market more
competitive. Therefore, businesses nowadays compete over supply chain’s
performance rather than simply on cost or on quality. Successful supply
chain itself is considered as a key competitive advantage for any company.
Modern supply chain has introduced two standardized models that can
evade the market fluctuations in certain ways. One of these is “lean” and
the other is known as “agile” supply chain mechanism. Though both run
Chapter 2
ABSTRACT
The importance of SCM has grown over time and continues to grow
in a ponderous trend. Researchers have been examining the adoption of
SCM in different industries. SCM is gaining endless attention. Indeed,
the effectiveness of SCM is impactful on the quality of product value,
logistics and by extension on customer satisfaction and organizational
Corresponding Author’s E-mail: [email protected].
†
Corresponding Author’s E-mail: [email protected].
INTRODUCTION
Figure 2. The flow of SCM in the manufacturing industry (Chopra & Meindl, 2016).
Sourcing
company sets its prices comparatively lower in order to gain market share
and capture customers and gradually increase the price as IKEA did, and
strategic repositioning where companies provide business solutions to
customers instead of offering services only related to the final products like
IBM did (Singh & Misra, 2020; Ye et al., 2018; Monczka et al., 2016;
Saleheen et al., 2019; 2019a; 2018; 2018a).
Facilities
Inventory
Transportation
Information
Pricing
The SCM macro process can be classified into three core components
- upstream, internal process and downstream (Chopra & Meindl, 2015).
Supplier Relationship Management (SRM) encompasses the interaction
with suppliers’ supplier, supplier and the organization, and it deals with
sourcing, negotiation with the supplier, purchase management, design
collaboration, and supply collaboration. Internal Supply Chain
Management (ISCM) concentrates on the internal operations, production
The term logistics was adopted as a general concept for the physical
distribution of goods. Years before the adoption of logistics for strategic
and managerial purposes are known as “dormant years” (Haraburda,
2016). The military-based orientation about logistics was reviewed during
the “Transformation” era in the 1950s. This was when logistics was
introduced as a term for transporting tangible goods (Ballou, 1992; 2007;
Saleheen et al., 2014; Saleheen et al., 2019; 2018).
The concept of Logistics was first incorporated back in the 1950s, and
it got matured in the 1970s. During the 1980’s Supply Chain Management
(SCM) theory was incorporated in the manufacturing industry. In the years
between 1992 and 1995, the perception of Balanced Scorecard (BSC), the
SCOR model was conceptualized, and the SCM was also incorporated in
the service industry illustrated in Figure 5.
Invariably, the importance of SCM has grown over time and continues
to grow in a ponderous trend. Numerous researchers have examined the
adoption of SCM in different industries. Besides, it also has an effect on
all major departments in an organization to integrate and coordinate the
flow both within and outside the organization (Hussain et al., 2019; Jeble
et al., 2019; Baliga et al., 2019; Romule et al., 2019).
It is also recommended that performance measurement be well defined
and concise enough for easy understanding. Taghipour et al., (2015)
opined that the metric for choosing an effective performance measurement
instrument should be - reliability, validity, accessibility, and relevance to
the processes or the concerned personnel.
Neely et al., (2004) stated that performance measurement system is
grouped into two classes - the internal and the external environment, the
internal environment presents the organization itself while the external
environment reflects the market within where an organization competes
(Kottala & Herbert, 2019; Fosso & Akter, 2019; Sweeney et al., 2015).
Collaboration is a vital component to achieve external assimilation
with other chain members, and SC collaboration necessitates a rational
amount of exertion from all contributing members to warrant the
accomplishment of prospective benefits (Salam, 2017; Nagashima et al.,
2015). SCPM approach is divided into financial and non-financial
measures. Board members and executives in an organization usually look
for financial data in order to make decisions, whereas mid-level executives
require more operational information.
performance, several tools and methods which have been already applied
are - the balanced scorecard (BSC) model, the SCOR model, Key
Performance Indicators (KPI), Management by Objectives (MBO), total
productivity management, activity-based costing, and economic value
added (Kottala & Herbert, 2019; Kurien & Qureshi, 2018; Taghipour, et
al., 2015; Saleheen et al., 2019; 2018).
However, the authors identified that, each model has its own merits
and criticisms, which has been discussed. Therefore, based on various
reviewers, some of the most observed deficiencies from the existing
performance measurement models are - green organization and
sustainability in Supply Chain Management (SCM), focus on resilient
SCM due to increased uncertainties and risks, focus on continuous
improvement in SC due to technological advancement, focus on agility in
SCM due to competition and short product life, focus on e-commerce and
e-SCM, focus on incorporating mathematical model or operations research
technique such as analytic hierarchical process (AHP) or structural
equation model (SEM) through multiple linear regression (MLR)
equations, the systematic technique to select SCPM, incorporate a
composed method in SCPM, application of precise metrics in SCPM,
develop an integrated model in measuring SCM performance, and,
performance measurement connected with the organization’s mission and
strategy aligned to company bottom-line financial performance (Kottala &
Herbert, 2019; Kurien & Qureshi, 2018; Taghipour, et al., 2015).
Supply chain performance measurement (SCPM) supports the
decision-making process through a holistic approach. It assists an
organization meaningfully, where top-level executives are enthusiastic
about understanding the bottom-line impacts of an organization and
performance measurement parameters reflects from procurement,
manufacturing, warehouse, distribution, customer service as well as
financial aspects of an organization (Kumar et al., 2020).
The term logistics was adopted as a general concept for the physical
distribution of goods. The years before the adoption of logistics for
strategic and managerial purposes are known as “dormant years”
(Haraburda, 2016). The military-based orientation about logistics was
reviewed during the “Transformation” era in the 1950s. This was when
logistics was introduced as a term for transporting tangible goods (Ballou,
1992; 2007). Alternatively, SCM was conceptualized by the logistics
experts (O’Neall & Haraburda, 2017). The conceptualization of SCM was
justified to approach and manage the supply chain (SC) with a unitary
strategy. Hence, strategic decisions would be harmonized between the
parties involved in the chain. This notion was considered unanimous
among logistics and marketing theorists (Beamon, 1999). SCM is a central
concept to the entire management theoretical realm. Hence, SCM
eliminates across so many other management aspects illustrated in Figure
8 (Gilling & Ulmer, 2016; Saleheen et al., 2019)
Invariably, the importance of SCM has grown over time and continues
to grow in a ponderous trend. Numerous researchers have examined the
adoption of SCM in different industries.
Based on the gap analysis, the researcher has proposed ten attributes
which should be embedded in supply chain performance measurement
(SCPM) for the manufacturing industry are as follows:
The transaction of financial assets in SCM is the focal point for SCM
professionals, where the accountability of a finance manager begins from
the funding, capital budgeting, analysis of suitable ventures and ends once
the payment from the customer is deposited to the bank. Incorporating
enterprise resource planning (ERP) software with financial SCM that
channels the information flows to internal parties, external parties and
escalates the reliability and quality of the financial information (Calle et
al., 2019; Alora & Barua, 2019; Baymout, 2015; Xiangfeng et al., 2017;
Alora & Barua, 2019; Chen, 2018; Ali et al., 2018).
COLLABORATION (CL)
VELOCITY (VC)
VISIBILITY (VS)
RESILIENCE (RE)
RELIABILITY (RL)
SUSTAINABILITY (SS)
CONCLUSION
This study has developed the ISCPM model which incorporates ten
comprehensive attributes to evaluate the supply chain performance for the
manufacturing industry to address issues for all its stakeholders that have
an impact on the organizational bottom-line performance, vision, mission,
values, and objectives. A significant number of studies have been carried
out on designing a comprehensive performance measurement framework
model. Yet, a lot of corporations were unsuccessful in implementing an
effective performance measurement methods in their operations. Despite
an incredible appreciation of the Balanced Scorecard model (BSC) in the
corporate to evaluate supply chain performance measurement (SCPM), the
model has found multiple constraints. In contrast, the SCOR model was
formulated to assist a business to enhance its efficiency with a vision to
regulate the supply chain performance measurement (SCPM) and
investigate as a point of reference for enterprises and inter-link the
financial statement.
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G
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192, 193,194, 197, 202
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104, 107, 111
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risk management, xii, 140, 141, 148
robot, 148
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rural population, 59
raw materials, x, 2, 29, 30, 61, 82, 86, 87,
89, 96, 99, 101, 106, 109, 122, 123, 128,
129, 138, 161, 184, 189 S
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science, 75, 77, 177
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119
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SCM Model for RMG, 96
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service industries, 99
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service organization, 49
reliability, 36, 39, 44, 46, 65, 91, 171, 172,
service provider, 98, 99, 101, 128, 137, 163
177
repair, 115, 116, 156
reputation, 197
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76, 100, 102, 122, 123, 126, 133, 135, 147, 152, 153, 158, 168
142, 149, 164, 187 transport, 33, 68, 71, 94, 110, 189
shortage, 136, 152, 156, 157, 159, 160, 187 transportation, 31, 33, 57, 59, 69, 86, 87,
soft system methodology, viii, 2, 4, 20 91, 102, 110, 128, 129, 132, 150, 186,
sourcing challenges, 148 188, 191, 193, 201
stock, xi, 18, 20, 128, 139, 147, 156, 161, treatment, 86, 123, 127, 132, 138, 139, 141
197
stockpiling, 140, 142, 152, 155
U
storage, 57, 59, 66, 68, 69, 71, 85, 110
strategic management, 179
urban areas, 130
strategic planning, 107
urban population, 59
structural equation modeling, 177, 178,
urbanization, 57, 60
179
structure, 3, 73, 91, 98, 124, 173, 177
supplier, 31, 33, 89, 93, 99, 150, 152, 153, V
154, 159, 160, 162, 187, 190, 197
supply chain efficiency, 56, 70, 71, 74, 78 vegetables, ix, 55, 56, 57, 58, 59, 60, 61,
supply chain management, 1, iii, v, vii, ix, 66, 67, 68, 69, 71, 72, 73, 74, 75, 76, 77,
xiii, 2, 23, 24, 28, 29, 33, 34, 35, 38, 49, 78
50, 51, 52, 53, 55, 56, 61, 65, 67, 69, 75, vision, 37, 40, 47, 48
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98, 99, 101, 102, 111, 113, 117, 118, vitamin B12, 131
144, 148, 149, 150, 163, 164, 180, 181, vocabulary, 45
184, 188, 194, 203, 205 vulnerability, 52, 91
supply disruption, 92, 155
supply shock, 93 W
sustainability, 13, 15, 17, 21, 23, 37, 38,
41, 42, 100, 117, 129, 167, 182 waste, xiii, 30, 69, 70, 74, 176, 184, 185,
sustainable development, 149 186, 187, 188, 190, 191, 192, 193, 194,
197
T waste management, 176, 192
wholesale, 59, 69
techniques, vii, 2, 3, 20, 73, 167, 193, 201 workers, 4, 83, 107
technological advancement, 38, 187 workforce, xi, 89, 96, 148
technologies, xi, 31, 45, 133, 139, 141, World Health Organization, 86, 122, 146,
147, 150, 161 167
testing, x, 121, 128, 130, 131, 138, 139, worldwide, 89, 100, 111, 123, 138, 202
177
total cost of ownership (TCO), 92, 96, 98