Development of a universal supply chain management performance index

In today’s competitive market, it is essential for companies to evaluate and benchmark their supply chain management (SCM) system. This task is difficult due to the lack of a universal index that includes the relevant criteria for any business nature such as manufacturing or service. This paper identified six major criteria and their respected sub-criteria of the SCM cycle based on literature survey and experts’ opinions from different industrial and academic backgrounds. A survey of the SCM experts is used to find the weight of each criterion on a SCM performance index (SCMPI). The proposed SCMPI is helpful in evaluating and monitoring the overall SCM performance and in setting targets of a desired performance level. The SCMPI is useful regardless of the business nature or size. It is also applicable with simple adjustment when some criterion is not available. The model was validated using a case study.