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Performance Measurement: Measuring Retail Supply Chain Performance
Abstract
The purpose of this chapter is to study what supply chain managers of a retail supply chain measure. In other words aim here to identify the key indicators for measuring retail supply chain performance. A qualitative approach is adopted. Published literature from refereed journals on supply chain performance measurement has been considered. Besides the need for organizations to adopt a holistic approach, firms remain focused on traditional financial measures (gross profit margin, Interest coverage, and debt and equity ratios). The chapter identifies key indicators for performance measurement and classifies them into four major categories: transport optimization, information technology optimization, inventory optimization and resource optimization. These key indicators are arranged precisely for retail industry. From a supply chain perspective, the non financial measures such as on-time delivery, training of employees, warehouse layout, etc. are also important aspects of measuring supply chain performance. Further research can be carried out to validate the relevance and applicability of identified indicators. The study can be further conducted to measure the interrelationships between the KPIs and their impact on financial performance of the firm. In this chapter the author attempts to identify the performance indicators specifically for retail supply chain. The identified measures are further categorized based on its operations.
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