Evaluating the Performance of Order Fulfillment Process in Supply Chain

Abdel Nasser Zaied, Mohamed Mansour, Mohab Mostafa

Abstract


Supply chain management has become a major component of competitive strategy to enhance organizational productivity and profitability. It is stated that supply chain performance measurement is so important in developing supply chain. Performance measurement has a substantial role to play in setting objectives, evaluating performance, and determining future courses of actions. The order fulfillment process specifies the particular steps regarding the flow of the customer orders through supply chain and how customer orders are: generated, entered, processed, manufactured, documented, picked, delivered and handled post-delivery, so it is considered the prime process to integrate and manage supply chain. The purpose of this study is to evaluate the performance of order fulfillment process through a developed measurement framework. A review of the current understanding of supply chain management and literature related to supply chain performance measurement is performed. The measurement framework is divided into two categories of measures that evaluate the performance of order fulfillment activities and the accuracy of the delivered orders respectively. Each category's measures are weighted by making a survey through a distributed questionnaire. Objectives Matrix tool is applied to each category to obtain an overall performance index for each category. A case study is made at a leading textile company in Egypt. The results are two performance indices for order fulfillment; the first one indicates the order fulfillment activities performance and the other indicates the delivered orders accuracy as the main intent of order fulfillment process.


Full Text:

PDF

References


Peng Wong, Wai, and Kuan Yew Wong. "Supply chain performance measurement system using DEA modeling." Industrial Management & Data Systems 107.3 (2007): 361-381.

Giunipero, Larry C., and Richard R. Brand. "Purchasing's role in supply chain management." The International Journal of Logistics Management 7.1 (1996): 29-38.

Beamon, Benita M., and Tonja M. Ware. "A process quality model for the analysis, improvement and control of supply chain systems." International Journal of Physical Distribution & Logistics Management 28.9/10 (1998): 704-715.

Chandra, Charu, and Sameer Kumar. "Supply chain management in theory and practice: a passing fad or a fundamental change?." Industrial Management & Data Systems 100.3 (2000): 100-114.

Cooper, Martha C., Douglas M. Lambert, and Janus D. Pagh. "Supply chain management: more than a new name for logistics." The international journal of logistics management 8.1 (1997): 1-14.

Pochampally, Kishore K., Surendra M. Gupta, and Kannan Govindan. "Metrics for performance measurement of a reverse/closed-loop supply chain." International Journal of Business Performance and Supply Chain Modelling 1.1 (2009): 8-32.

Beamon, Benita M. "Measuring supply chain performance." International Journal of Operations & Production Management 19.3 (1999): 275-292.

Sillanpaa, Ilkka, and Pekka Kess. "Supply chain performance measurement framework for manufacturing industries–a theoretical approach." MIC 2011: Managing Sustainability? Proceedings of the 12th International Conference, Portorož, 23–26 November 2011 [Selected Papers]. University of Primorska, Faculty of Management Koper, 2011.

Otto, Andreas, and Herbert Kotzab. "Does supply chain management really pay? Six perspectives to measure the performance of managing a supply chain." European Journal of Operational Research 144.2 (2003): 306-320.

Najmi, Ali, Mohammad Reza Gholamian, and Ahamad Makui. "Supply chain performance models: A literature review on approaches, techniques, and criteria." Journal of Operations and Supply Chain Management 6.2 (2013): 94-113.

Ghalayini, Alaa M., and James S. Noble. "The changing basis of performance measurement." International Journal of Operations & Production Management 16.8 (1996): 63-80.

De Toni, Alberto, and Stefano Tonchia. "Performance measurement systems-models, characteristics and measures." International Journal of Operations & Production Management 21.1/2 (2001): 46-71.

Chan, Felix TS, and H. J. Qi. "Feasibility of performance measurement system for supply chain: a process-based approach and measures."Integrated manufacturing systems 14.3 (2003a): 179-190.

Chan, Felix TS, and Han J. Qi. "An innovative performance measurement method for supply chain management." Supply chain management: An international Journal 8.3 (2003b): 209-223.

Gunasekaran, Angappa, Christopher Patel, and Ronald E. McGaughey. "A framework for supply chain performance measurement." International journal of production economics 87.3 (2004): 333-347.

Shepherd, Craig, and Hannes Günter. "Measuring supply chain performance: current research and future directions." Behavioral Operations in Planning and Scheduling. Springer Berlin Heidelberg, 2011. 105-121.

Chan, Felix TS. "Performance measurement in a supply chain." The international journal of advanced manufacturing technology 21.7 (2003): 534-548.

Theeranuphattana, Adisak, and John CS Tang. "A conceptual model of performance measurement for supply chains: alternative considerations."Journal of Manufacturing Technology Management 19.1 (2008): 125-148.

Kaplan RS and Norton DP. "The Balanced Scorecard - Measures That Drive Performance." Harvard Business Review January-February (1992): 71.

Kaplan, Robert S., and David P. Norton. "Putting the Balanced Scorecard to work." Focus Your Organization on Strategy—with the Balanced Scorecard (2000): 14.

Kaplan, Robert S., and David P. Norton. "Using the balanced scorecard as a strategic management system." (1996).

Neely, Andy, Mike Gregory, and Ken Platts. "Performance measurement system design: a literature review and research agenda." International journal of operations & production management 25.12 (2005): 1228-1263.

Bhagwat, Rajat, and Milind Kumar Sharma. "Performance measurement of supply chain management: A balanced scorecard approach." Computers & Industrial Engineering 53.1 (2007): 43-62.

Amer, Yousef, Lee Luong, Sang-Heon Lee, and M. Azeem Ashraf. "Optimizing order fulfillment using design for six sigma and fuzzy logic."International Journal of Management Science and Engineering Management3, no. 2 (2008): 83-99.

McGladrey Manufacturing and Distribution Monitor survey (2014). Available from: https://opsdog.com/industries/order-management/order-management-kpis-and-benchmarks, last accessed: December 12, 2014.

Waller, Matthew A., Dennis Woolsey, and Robert Seaker. "Reengineering order fulfillment." The International Journal of Logistics Management 6.2 (1995): 1-10.

Maskell, Brian H., Bruce Baggaley, and Larry Grasso. "Practical lean accounting: a proven system for measuring and managing the lean enterprise". CRC Press, 2011.

Rummler, Geary A., and Alan P. Brache. "Improving performance: How to manage the white space on the organization chart". John Wiley & Sons, 2012.

Wisner, Joel, Keah-Choon Tan, and G. Leong."Principles of supply chain management: a balanced approach". Cengage Learning, 2015.

Ecklund, David K. "Warehousing Efficiency and Effectiveness in the Supply Chain Process". Supply Chain Management Review. 15 Oct. 2010. Web. 24 May 2012.

Klapper, Larry S., et al. "Supply chain management: a recommended performance measurement scorecard". No. LMI-LG803R1. LOGISTICS MANAGEMENT INST MCLEAN VA, 1999.

Gunasekaran, Angappa. "Agile manufacturing: a framework for research and development." International journal of production economics 62.1 (1999): 87-105.

Mark Davidson (2013). LNS research. Available from:http://blog.lnsresearch.com/Blog/Bid/188295/28-Manufacturing-Metrics-That-Actually-Matter-The-Ones-We-Rely-On. Last accessed: December 20, 2014.

Basu, Ron, and J. Nevan Wright."Total supply chain management". Routledge, 2010.

Vitasek K. "Warehousing & Fulfillment Process Benchmark and Best Practices Guide".

Aronovich, D., Tien, M., Collins, E., Sommerlatte, A. and Allain, L. "Measuring Supply Chain Performance: Guide to Key Performance Indicators for Public Health Managers". Arlington, Va.: USAID, DELIVER PROJECT, Task Order, 2010.

REM Associates. "Customer Service Management and Benchmarking: Standards for Excellence". Princeton, New Jersey, June 1999.

Croxton, Keely L., et al. "The supply chain management processes." The International Journal of Logistics Management 12.2 (2001): 13-36.

Lambert, Douglas M. "Supply chain management: processes, partnerships, performance". Supply Chain Management Inst, 2008.

Riggs, J.L. "Monitoring with a Matrix that Motivates as it Measures". Industrial Engineering, 18(1), p.34, 1986


Refbacks

  • There are currently no refbacks.