Performance Measurement of Supply Chain Management: A Decision Framework for Evaluating and Selecting Supplier Performance in a Supply Chain

Supply Chain Management (SCM) has gained significance as one of the 21st century manufacturing paradigms for improving organizational competitiveness. Supply chain ensures improved efficiency and effectiveness of not only product transfer, but also information sharing between the complex hierarchies of all the tiers. The literature on SCM that deals with strategies and technologies for effectively managing a supply chain is quite vast. In recent years, organizational performance measurement (PM) and metrics have received much attention from researchers and practitioners. Performance measurement and metrics have an important role to play in setting objectives, evaluating performance, and determining future courses of actions. Apart from the common criteria such as cost and quality, ten other performance measurements are defined, visibility, trust, innovativeness, delivery reliability, flexibility and responsiveness, resource utilization, cost, assets, technological capability, service and time to market, so total twelve criteria and fifty eight subcriteria are used to evaluate the performance in supply chain. So, for evaluating and selecting supplier a multi-attribute decision-making technique, an analytic hierarchy process (AHP), is used to make decision based on the priority of performance measures. This paper describes a decision framework for evaluating and selecting supplier performance in a supply chain. A case study from the automotive industry is used to demonstrate the AHP technique