Professional Documents
Culture Documents
A SCOR-based model for supply chain performance measurement: application in the footwear
industry
Miguel Afonso Sellitto*, Giancarlo Medeiros Pereira, Miriam Borchardt, Rosnaldo Incio da Silva and
Cludia Viviane Viegas
Supply Chain Operations Reference (SCOR) is a widely employed model for SC performance assessment, regardless its
generic nature. This article presents a SCOR-based model for performance measurement in supply chains (SC) and apply
it in the context of Brazilian footwear industry. The model has two dimensions: SCOR processes (source, make, deliver
and return) and performance standards adapted from original SCOR (cost, quality, delivery and exibility). This structure
delivers a 4 4 matrix, with each component assessed under analytical hierarchy process. Using focus groups, SCs
experts weighted each component of the matrix regarding their relevance. Thereafter, SCs managers indicated respective
results. The SCs overall performance was obtained by adding the performance of all indicators. The model application
embraced one focal footwear manufacturer, four suppliers, three distribution channels and a return channel, with 85 indi-
cators assessed. The achieved performance for the whole SC is 75.29%.The main gaps were found in deliver process
(12.78 percentual points of difference between relevance and achieved proportions) and in exibility performance (9.82).
Further application is recommended in order to nd consolidated results.
Keywords: supply chain performance; performance measurement; SCOR model; strategic priorities
1. Introduction
Competitive markets force manufacturing companies to joint their own competences with capabilities of their partners
(Vijayvargiya and Dey 2010). Such arrangements, known as Supply Chains (SC), envisage the coordination of materials,
information and payments ows between individual companies (Gunasekaran, Patel, and Mcgaughey 2004). The main
goals are to optimise the overall performance and to achieve competitiveness to the entire SC (Lockamy and
Mccormack 2004). In this context, a comprehensive overall performance measurement system is increasingly required to
avoid unbalances and enable effective coordination. As SCs evolved from linear to complex structures, multidimensional
and multivariate analyses are required to perform their assessment (Chae 2009).
This paper develops and applies a model for Supply Chain Performance Measurement (SCPM) based on Supply
Chain Operations Reference (SCOR) model. The model includes a multivariate structure, organised in a 4 4 matrix,
relating SCOR processes except plan (source, make, deliver, return, etc), and performance standards (reliability, respon-
siveness, agility, cost, assets, etc). For purposes of this model, such performance standards were translated as quality
(understood as reliability or perfect order fullment, and return as assets for clients satisfaction), delivery time (taken as
responsiveness or order fullment cycle time), exibility (or agility), and costs (total costs to serve, including inventory
budget and level of sales).
The consideration of planning, embraced by the plan process, although being a relevant part of SCOR model, repre-
sents a constraint in this study. Plan process was excluded because, for the analysed case, it is carried out only once a
year, while source, make, deliver and return measurements are more often performed their systematisation can occur
every three months or even once a month. Therefore, denition of performance requirements for the entire SC, aggre-
gated forecasting, new products development and inclusion of new partner, as well as replacement of current ones all
related to SCOR plan process are not relevant in such specic context, an initial application. In further, more mature
and continued applications, the plan process must be included.
An experimental application was carried out in a set of companies that compose part of a footwear SC in Sinos Valey,
Southern Brazil. A focus group formed by SCs experts weighted the constructs of the model under Analytical Hierarchy
Process (AHP). They expressed their judgment regarding relevance. Thereafter, managers of the SC indicated achieved
performances for each construct. The main contribution of the article is an overall measurement framework that informs
the global performance of a SC and how the measuring results were obtained. Brazilian footwear industry is the third
main global shoes producer, and it is also a relevant source of jobs and income for the country (Navas-Alemn 2011).
Furthermore, as a fashion industry, it presents short product life cycles, tremendous product variety, volatile and unpre-
dictable demand, and long and inexible supply processes (Sen 2008, 571), which characterises risks and uncertainties
of SCPM (Sanayei et al. 2008). Therefore, it justies the need of such study, and signicant difculties for performance
measuring in the context of SC.
The scope of the study was limited to four suppliers; the focal company; three channels of distribution; and a return
channel. This article is organised as follows: in the second section, we review SCOR and AHP applications to SC per-
formance measuring; in the third, methodological procedures and model framework are presented; application, results,
discussion, with theoretical and practical implications are found in the fourth section; nal remarks, limitations and
suggestion for future research are indicated in the fth section.
higher, other lower levels of maturity and information availability. It justies a simplied use of AHP, as well as
adaptions in original SCOR standard for the purposes of this investigation.
Source % product budget % scrap and rework % fast delivery average number of products in a mix
Inventory level % orders accepted % on-time delivery average lot size
average time of delivery average time for modication
Make % product budget % scrap and rework % fast delivery average number of products in a mix
Inventory level % orders accepted % on-time delivery average lot size
average time of delivery average time for modication
Deliver % logistic budget % client satisfaction % fast delivery average number of products in a mix
% sales budget % return % on-time delivery average lot size
average time of delivery
Return % logistic budget % remanufactured % fast delivery average number of products in a mix
% recovered value % recycled % on-time delivery average lot size
average time of delivery
4920 M.A. Sellitto et al.
DS1
S1
Make
M1 DS2
S2
Deliver
DS3
S3
S4
RT1
Source
Return
Cost (%) Quality (%) Delivery time (%) Flexibility (%) Total (%)
nal priority vectors are shown in Tables 2 and 3. Consistency ratios (CR) are acceptable (Saaty 1980), since CR <<
10%.
The multiplying of i processes performances and j priorities assignments gives the best desired results for each Aij
cell indicator. If two or more indicators are assigned to the same cell, the prioritisation is uniformly distributed. Table 4
shows the prioritisation of cells.
Process Performance Firm Indicator Importance (%) Measured (%) % value added
(Continued)
International Journal of Production Research 4923
Table 5. (Continued).
Process Performance Firm Indicator Importance (%) Measured (%) % value added
Process Relevance (%) Achieved (%) Gap Performance Relevance (%) Achieved (%) Gap
Source 18.16 13.41 4.76 pp. Cost 41.56 35.45 6.11 pp.
Make 26.09 21.97 4.12 pp. Quality 10.22 8.56 1.66 pp.
Deliver 46.41 33.63 12.78 pp. Delivery time 17.38 10.26 7.12 pp.
Return 9.34 6.30 3.04 pp. Flexibility 30.84 21.02 9.82 pp.
Figure 2. Relationship between performance and importance for (a) processes and (b) priorities.
requirements of customers are now totally achieved, quality is no longer a problem and its importance decreased. It
shows changing in maturity level of the whole SC (Estampe et al. 2013), and reinforces the need for continuous SCPM
in order to adapt the prioritisation of value for customers.
Acknowledgement
The research was funded by CNPq Brazil, the Brazilian agency of scientic research, under the process number [483271/2009-8]. We
are grateful to the practitioners that participated of the research. The authors declare that they have no conict of interest involving
the entire research, including those listed in the Disclosure of conicts of interest session of the T&F Author Services page.
International Journal of Production Research 4925
Funding
The research was funded by CNPq Brazil, the Brazilian agency of scientic research, under the process number 483271/2009-8.
References
Agarwal, A., R. Shankar, and M. Tiwari. 2006. Modeling the Metrics of Lean, Agile and Leagile Supply Chain: An ANP-based
Approach. European Journal of Operational Research 173 (1): 211225.
Akyuz, A., and E. Erman. 2010. Supply Chain Performance Measurement: A Literature Review. International Journal of
Production Research 48 (17): 51375155.
Alomar, M., and Z. J. Pasek. 2014. Linking Supply Chain Strategy and Processes to Performance Improvement. Procedia 47th
Conference on Manufacturing Systems CIRP 17: 628634.
Aramyan, L., A. Lansink, J. van der Vorst, and O. van Kooten. 2007. Performance Measurement in Agri-food Supply Chains: A
Case Study. Supply Chain Management: An International Journal 12 (4): 304315.
Azevedo, S., H. Carvalho, and V. Cruz-Machado. 2011. A Proposal of LARG Supply Chain Management Practices and a
Performance Measurement System. International Journal of e-Education, e-Business, e-Management and e-Learning 1 (1):
714.
Bai, C., and J. Sarkis. 2012. Supply-chain Performance-measurement System Management Using Neighbourhood Rough Sets.
International Journal of Production Research 50 (9): 24842500.
Bechtel, C., and J. Jayaram. 1997. Supply Chain Management: A Strategic Perspective. The International Journal of Logistics
Management 8 (1): 1534.
Bhagwat, R., and M. Sharma. 2007a. Performance Measurement of Supply Chain Management: A Balanced Scorecard Approach.
Computers & Industrial Engineering 53 (1): 4362.
Bhagwat, R., and M. Sharma. 2007b. Performance Measurement of Supply Chain Management Using the Analytical Hierarchy
Process. Production Planning & Control 18 (8): 666680.
Bourne, M., A. Neely, J. Mills, K. Platts, and M. Wilcox. 2000. Designing, Implementing and Updating Performance Measurement
Systems. International Journal of Operations & Production Management 20 (7): 754771.
Brewer, P., and T. Speh. 2000. Using the Balanced Scorecard to Measure Supply Chain Performance. Journal of Business Logistics
21 (1): 7593.
Cai, J., X. Liu, Z. Xiao, and J. Liu. 2009. Improving Supply Chain Performance Management: A Systematic Approach to Analyzing
Iterative KPI Accomplishment. Decision Support Systems 46 (2): 512521.
Chae, B. 2009. Developing Key Performance Indicators for Supply Chain: An Industry Perspective. Supply Chain Management: An
International Journal 14 (6): 422428.
Chan, F. 2003. Performance Measurement in a Supply Chain. The International Journal of Advanced Manufacturing Technology 21
(7): 534548, 2003.
Clivill, V., and L. Berrah. 2012. Overall Performance Measurement in a Supply Chain: Towards a Supplier-prime Manufacturer
Based Model. Journal of Intelligent Manufacturing 23 (6): 24592469.
Elgazzar, S., T. Nicoleta, N. Hubbard, and D. L. Leach. 2012. Linking Supply Chain Processes Performance to a Companys
Financial Strategic Objectives. European Journal of Operational Research 223 (1): 276289.
Estampe, D., S. Lamouri, J. L. Paris, and S. Brahim-Djelloul. 2013. A Framework for Analysing Supply Chain Performance
Evaluation Models. International Journal of Production Economics 142: 247258.
Forman, E. H. 1993. Facts and Fictions about the Analytic Hierarchy Process. Mathematical and Computer Modelling 17, 4-5:
1926.
Fu, H. P., K. K. Chu, C. W. Lin, and C. R. Chen. 2010. A Study on Factors for Retailers Implementing CPFR A Fuzzy AHP
Analysis. Journal of Systems Science and Systems Engineering 19 (2): 192209.
Gunasekaran, A., C. Patel, and R. McGaughey. 2004. A Framework for Supply Chain Performance Measurement. International
Journal of Production Economics 87 (3): 333347.
Hausman, W. 2003. Supply Chain Performance Metrics. In The Practice of Supply Chain Management: Where Theory and
Application Converge, edited by T. Harrison, H. Lee, and J. Neale, 6173. Amsterdam: Kluwer Academic.
Holmberg, S. 2000. A Systems Perspective on Supply Chain Measurements. International Journal of Physical Distribution &
Logistics Management 30 (10): 847868.
Huang, S. H., and H. Keskar. 2007. Comprehensive and Congurable Metrics for Supplier Selection. International Journal of
Production Economics 105: 510523.
Kleijnen, J., and M. Smits. 2003. Performance Metrics in Supply Chain Management. Journal of the Operational Research Society
54: 507514.
Lockamy III, A., and K. McCormack. 2004. Linking SCOR Planning Practices to Supply Chain Performance: An Exploratory
Study. International Journal of Operations & Production Management 24 (12): 11921218.
Lu, T. P., A. J. Trappey, Y. K. Chen, and Y. D. Chang. 2013. Collaborative Design and Analysis of Supply Chain Network
Management Key Processes Model. Journal of Network and Computer Applications 36 (6): 15031511.
4926 M.A. Sellitto et al.
Mafakheri, S., M. Breton, and A. Ghoniem. 2011. Supplier Selection-order Allocation: A Two-stage Multiple Criteria Dynamic
Programming Approach. International Journal of Production Economics 132: 5257.
Naesens, K., L. Gelders, and L. Pintelon. 2009. A Swift Response Framework for Measuring the Strategic Fit for a Horizontal
Collaborative Initiative. International Journal of Production Economics 121: 550561.
Navas-Alemn, L. 2011. The Impact of Operating in Multiple Value Chains for Upgrading: The Case of the Brazilian Furniture and
Footwear Industries. World Development, 39 (8): 13861397.
Nudurupati, S. S., U. S. Bititci, V. Kumar, and F. T. S. Chan. 2011. State of the Art Literature Review on Performance
Measurement. Computers & Industrial Engineering 60: 279290.
zgen, D., S. nt, B. Glsn, and U. R. Tuzkaya. 2008. A Two-phase Possibilistic Linear Programming Methodology for
Multi-objective Supplier Evaluation and Order Allocation Problems. Information Sciences 178: 485500.
Papakiriakopoulos, D., and K. Pramatari. 2010. Collaborative Performance Measurement in Supply Chain. Industrial Management
& Data Systems 110 (9): 12971318.
Rabelo, L., H. Eskandari, T. Shaalan, and M. Helal. 2007. Value Chain Analysis Using Hybrid Simulation and AHP. International
Journal of Production Economics 105: 536547.
Ramanathan, U. 2014. Performance of Supply Chain Collaboration A Simulation Study. Expert Systems with Applications 41:
210220.
Saaty, T. 1980. The Analytic Hierarchy Process: Planning, Priority Setting, Resource Allocation. New York: McGraw-Hill.
Sanayei, A., S. F. Mousavi, M. R. Abdi, and A. Mohaghar. 2008. An Integrated Group Decision-making Process for Supplier
Selection and Order Allocation Using Multi-attribute Utility Theory and Linear Programming. Journal of the Franklin Institute
345: 731747.
SCC (Supply Chain Council). 1996. What is SCOR? Accessed January 2013. http://supply-chain.org/scor
Sen, A. 2008. The US Fashion Industry: A Supply Chain Review. International Journal of Production Economics 114: 571593.
Simon, H. 1999. The Architecture of Complexity. In Facets of Systems Sciences. edited by G. Klin (org.), 457476. New York:
Plenum Press.
Subramanian, N., and R. Ramanathan. 2012. A Review of Applications of Analytic Hierarchy Process in Operations Management.
International Journal of Production Economics 138: 215241.
Swafford, P. M., G. Soumen, and N. Murthy. 2006. The Antecedents of Supply Chain Agility of a Firm: Scale Development and
Model Testing. Journal of Operations Management 24: 170188.
Vijayvargiya, A., and A. Dey. 2010. An Analytical Approach for Selection of a Logistics Provider. Management Decision 48 (3):
403418.
Vinodh, S., S. R. Devadasan, K. E. K. Vimala, and D. Kumar. 2013. Design of Agile Supply Chain Assessment Model and Its Case
Study in an Indian Automotive Components Manufacturing Organization. Journal of Manufacturing Systems 32: 620631.
Wang, G., S. H. Huang, and J. P. Dismukes. 2004. Product-driven Supply Chain Selection Using Integrated Multi-criteria
Decision-making Methodology. International Journal of Production Economics 91: 115.
Ward, P., J. McCreery, L. Ritzman, and S. Deven. 1998. Competitive Priorities in Operations Management. Decision Sciences 29
(4): 10351046.
Xu, J., B. Li, and D. Wu. 2009. Rough Data Envelopment Analysis and Its Application to Supply Chain Performance Evaluation.
International Journal of Production Economics 122: 628638.
Copyright of International Journal of Production Research is the property of Taylor & Francis
Ltd and its content may not be copied or emailed to multiple sites or posted to a listserv
without the copyright holder's express written permission. However, users may print,
download, or email articles for individual use.