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State of the art of Supply Chain Performance Measurement in Danish industrial companies

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The 23rd Annual NOFOMA Conference 9–10 June 2011, Harstad, Norway ; Purpose: We have examined which dimensions are used by the largest Danish manufacturingcompanies to measure SCPM at operational, tactical and strategic level, how can thesedimensions be classified, and how do these empirical results have implications for practiceand selected SCPM-theories.Design/methodology/approach: A deductive structure based on a theoretical framework was used to design an empiricalinvestigation of 54 Danish manufacturing companies, which all have revenue of more thanDKK 500 million. Furthermore, qualitative investigation was done by analyzing four casecompaniesin order to get a more in-depth picture of how SCPM is used in practice.Findings: The four most used SCPM metrics have downstream focus. Companies that use SCPMhave a more deliberated split between metrics with focus on operational, tactical andstrategic level. While the quantitative data indicates that non-financial measurements aremost frequently used, the qualitative data implies that the companies use financialmeasures as basis for performance measurement and that results from non-financialmeasures have second priority.Research limitations/implications (if applicable): The model is limited to large Danish industrial companies and we propose to widen themodel to upstream and downstream supply chain partners.Practical implications (if applicable): The paper shows the most important and most frequently used supply chain relevant keyperformance indicators as well as a process model of how to implement supply chainperformance measurement in a company.Original/value: This paper closes the gap between theory and practice within the area of performancemeasurement and management within the context of supply chain management. Theproposed SCPM model has been theoretically developed and empirically validated.

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Casper Algren, Herbert Kotzab

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