The objective of this paper is to demonstrate the challenges when developing a common performance measurement system (PMS) in the context of a collaborative supply chain.
The paper utilizes qualitative and quantitative data from a case study. The qualitative data refer to the assessment of collaborative performance measures based on interviews with experts, while the quantitative data demonstrate the use of two performance measures in a collaborative supply chain network.
The development of a collaborative PMS is a challenging task. Through the systematic study of two significant performance measures for a supply chain, it was found that the one could not be supported due to reliability restrictions, while the other requires the development of a complex information system. Based on these, a discussion of specific challenges follows.
The paper has the general case study limitations.
Companies operating in supply chain networks need to synchronize existing business processes and data before the design of a new PMS. Selecting the measures and the measurement method is not a trivial task. Important challenges reveal when dealing with, underlying data, business processes and the evaluation method of a PMS in supply chains.
The management control function usually focuses on the design and development of PMSs for a single organization. Limited knowledge exists when more than two companies require the development of a PMS for a jointly agreed business process.