The alignment of collaboration and the importance of integrated performance measurement

Authors : M. Sarana and R. J. Mason

Keywords : Collaboration, Performance Measurement, Alignment, Supply Chain Management

The notion that supply chains compete with supply chains is encouraging companies to manage their entire supply chain so that optimum levels of efficiency and effectiveness can be realized for the successful running of business operations. In line with this concept, all the players within the supply chain must work together to ensure the achievement of this. Therefore, supply chain efficiency and collaborative working appear to be positively correlated. However, whilst this may be the case, companies need to be able to measure the performance of collaboration in the supply chain. Collaboration between companies may occur in many forms such as integrated manufacturing processes, integrated distribution processes and information sharing processes. Do we measure the performance based on these processes or the supply chain as a whole? This paper presents a literature review of research in this area focusing on the alignment of collaboration and the importance of integrated performance measurement, supported by case study examples. It argues that where there is a misalignment of measures, even in a minor way, this can undermine trust and mutual understanding vital to the sustainability of an integrated collaborative approach.

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Attachment	Size
IPROMSpresentation.ppt	1.04 MB
PID194403.pdf	48.45 KB

Submitted by soroka on Sun, 02/07/2006 - 1:17pm.
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Elaboration on approach to measure performance in case study

Submitted by kwng on Tue, 04/07/2006 - 10:31am.

As a co-chairman of this session, I would like to congratulate your well written paper which highlighted the mismatch of performance measure within the supply networks and the need to have a common effective performance measures. You also raised the issues of resource allocation in managing the performance measures within a supply network. However, I hope you can clarify further with the steel supply chain about the 20% difference. Were you measuring the differences in performance measure and found the 20% differences by just looking at the values in target? In my opinion, in time and on time is different i.e. one is delivered within a certain period of time and the other delivered on specific date or time (due difference in target of interest). There should be differences in the values. If you are measuring the differences in performance measure, I would appreciate very much if you would elaborate slightly on the approach in determining the 20% and any further investigation of the source that caused this 20% i.e. is the 20% difference solely due to the difference in performance measurement?

Thank you.

Collaborative Supply Chains

Submitted by Thomas on Wed, 12/07/2006 - 8:46pm.

Thank you for a very interesting paper on supply chain systems.

In your opinions, do you think that UK manufacturers will form part of a collaborative supply chain in the future and if so, what will their key features need to be in order to survive?.

The reason for asking is that I was recently involved with a major automotive parts manufacturer in trying to keep the company in Wales following a decision by the owners to relocate to Slovakia. After an extensive design and systems analysis we could prove that the company would be better off in keeping operations in Wales however, the decision to relocate had as much to do with the fact that most of the major automotive OEMs had already moved their manufacturing facilities to Slovakia.

So, in what capacity therefore will UK companies fit into a collborative supply chain?. It does not look like it will be in a manufacturing capacity anymore

Thanks

Andrew

Please respond to questions raised during conference

Submitted by kwng on Fri, 14/07/2006 - 9:44pm.

I hope you can respond to the questions raised during the conference.

Thank you.

Thank you for your question.

Submitted by sarana on Wed, 26/07/2006 - 12:47pm.

Thank you for your question. Firstly I must apologise for a typo -- the Transport Provider measure should read “percentage of loads delivered on time” and not “percentage of loads delivered in time”.

Whilst is appears that the Transport Provider and Tube Manufacturer have the same measure, they actually use a different calculation for this. This difference of 20 per cent relates to point of delivery, as each company used its own definition in determining whether the products have been delivered on time.

Collaborative Supply Chains

Submitted by sarana on Wed, 26/07/2006 - 1:23pm.

Thank you for your question. In my opinion, I think there will be some manufacturing in the UK as supply chains are attempting to become more flexible and offer products that are mass customised. However, I am unsure as to how much manufacturing will remain in the UK and what sectors they will comprise.

Any collaborative supply chain will need to consider factors that are raised by Barratt (2004). As well as focusing on collaboration companies will also need to align their cultural and strategic elements. Cultural elements focus on developing a collaboration culture which includes trust, information exchange and openness and communication. The strategic elements focus on building resources and commitment that will enable the collaboration. These include looking at the corporate focus of the companies (this is then built into the performance measure) and the technologies they use (for process alignment). Therefore, the collaboration and performance measurement system combined with the cultural and strategic elements may result in successful collaboration.

Thank you for elaboration and explanation

Submitted by kwng on Thu, 27/07/2006 - 9:13am.

I am very pleased to receive your explanation on the measurement issue that I have raised. I believed it would be interesting to analyse the effect of different calculation on the same measure and determine an appropriate calculation for a particular measure. Thank you.

Typo

Submitted by Pham on Tue, 01/08/2006 - 9:43pm.

Hi Mandip: If you want to correct the typo you referred to, Anthony is your man! He could be persuaded to receive your corrected PDF file, but you will need to move quickly!
Cheers.
DTP.

Correction to your typo error

Submitted by kwng on Mon, 07/08/2006 - 4:12pm.

As advised by Prof. Pham, please contact Mr. Soroka (Anthony) at sorokaaj -AT- Cardiff.ac.uk and seek his advice on resubmitting your paper with correction as soon as possible to avoid your paper with typo error to be published. Thank you.

The alignment of collaboration and the importance of integrated performance measurement

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