As supply chains continue to replace individual firms as the economic engine for creating value during the twenty-first century, understanding the relationship between supply chain management (SCM) practices and supply chain performance (SCP) becomes increasingly important. Performance measurement is the process of quantifying the effectiveness and efficiency of action. Effectiveness is the extent to which a customer’s requirements are met and efficiency measures how economically a firm’s resources are utilized when providing a pre-specified level of customer satisfaction. Performance measurement systems are described as the overall set of metrics used to quantify both the efficiency and effectiveness of action (Shepherd and Gunter 2006).
KeywordsSupply Chain Lead Time Customer Satisfaction Supply Chain Management Delivery Performance
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