Article | REF: AG5170 V1

Evaluation models of the supply chain performance

Author: Dominique ESTAMPE

Publication date: April 10, 2011

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ABSTRACT

Within companies, organizational models derived either from managers' experience or already defined concepts and processes allow for the definition of new internal or external organizations. Reference models are analysis or process designing tools which enable managers to implement "best practices" which vary according to each company's management model. The aim of this process, called the supply chain management, is to improve collaboration between companies, the performance of the company and more generally that of the network within the framework of a system approach where each sub-element of the system contributes to general improvement.

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AUTHOR

  • Dominique ESTAMPE: Professor Supply Chain Management - Director of the Institut Supérieur de Logistique Industrielle (ISLI), BEM Bordeaux Management School

 INTRODUCTION

Companies define their new internal or external organizations using organizational models derived either from managers' experience (empirical models), or from concepts and approaches already defined (reference models). Reference models are analysis tools, or process creation tools, which suggest "best practices" to managers, the distinctive feature of which is that they differ according to each company's management style.

Supply chain management "best practices" aim to improve :

  • Collaboration between each company, notably through :

    • implementation of common management tools (shared procurement management, collaborative forecast management, etc.),

    • the use of new inter-company information technologies (electronic data interchange via Internet, radio frequency, etc.),

    • experience sharing in design, industrialization, etc;

  • the performance of the company and, more globally, of the network of companies that make up the value chain.

The notion of performance is based on systemic modeling, and supply chain management is part of a system approach in which each sub-element of the system contributes to overall optimization. Performance is part of a broad vision associated with the notion of creating value for the company and its stakeholders (shareholders, customers, etc.).

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Supply chain performance evaluation models