Development of a supply chain performance measurement system

Guideline for the electronics manufacturing industry

Master's Thesis , 2014 , 62 Pages , Grade: 1,3

Business economics - Supply, Production, Logistics

The goal of this master thesis is to provide an analysis of existing supply chain performance measurement systems as well as an evaluation of their suitability for the electronics manufacturing industry. Furthermore, the hypothesis that the implementation of a supply chain performance measurement system in cooperation with supply chain partners will lead to sustainable competitive advantages within the supply chain is going to be proven.

As competitiveness in future industry will be increasingly “supply chain vs. supply chain”, rather than “firm vs. firm”, holistic performance measurement systems become more and more relevant to global operating companies (Hult, 2008, p.538). Although the efficient management of global supply chain networks already has the potential to create competitive advantages, most industrial companies still focus on production efficiency and selective optimization that disable fast adaption to changing customer requirements. In increasingly saturated markets a technology-driven competitive advantage is often quickly compensated by low-cost countries. In contrast high service quality established by efficient logistics processes can hardly be adopted in short time (Richert, 2006, p.44). Especially in the areas of fast moving consumer goods and the electronics industry, companies need to be able to quickly react on changing consumer demands in order to fulfill the customer’s requirements in a flexible way.

Cooperative management between supply chain partners creates higher transparency and market-orientation, that allows the entire supply chain network to operate in a more flexible and efficient way. In consequence the supply chain’s competitiveness will increase due to higher service value for the customer. But, as most industries still struggle with the development of flexible supply chain structures, suitable management tools are obviously not available or applied yet. Therefore, this master thesis provides in a first step an evaluation of existing supply chain performance measurement systems regarding their suitability for current business environments. In a second step the development process towards a practical implementation of the most suitable performance measurement system in an electronics manufacturing company is described. Based on a defined supply chain strategy a standardized approach leads to the development of a supply chain management system providing the preconditions for creating a competitive advantage.

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Intention of the master thesis
• Structure of the master thesis
• Evaluation of supply chain performance measurement systems
• Definition of Supply Chain Management
• Description of existing supply chain performance measurement systems
• General requirements of SC performance measurement
• Tableau de Bord
• Skandia Navigator
• Performance Pyramid
• Quantum Performance Measurement
• Balanced Scorecard
• Suitability evaluation of supply chain performance measurement systems
• Supply Chain performance measurement with the balanced scorecard
• Financial perspective
• Customer perspective
• Process perspective
• Learning & growth perspective
• Cooperation perspective
• Practical advantages of supply chain performance measurement
• Hypothesis
• Development of a supply chain balanced scorecard for an electronics manufacturing company
• Industry-based supply chain characteristics
• Methodology
• Definition of a supply chain strategy
• Decision on utilized performance indicators within the balanced scorecard
• Implementation of the supply chain balanced scorecard
• Verification of the performance measurement system's suitability
• Summary and conclusion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This master thesis aims to analyze existing supply chain performance measurement systems and evaluate their suitability for the electronics manufacturing industry. It also seeks to prove the hypothesis that implementing a supply chain performance measurement system in collaboration with supply chain partners will lead to sustainable competitive advantages within the supply chain.

• Importance of holistic performance measurement systems in a competitive supply chain environment
• Challenges of traditional production efficiency-focused approaches in adapting to changing customer needs
• Benefits of cooperative management between supply chain partners for increased transparency and flexibility
• Evaluation of existing performance measurement systems for suitability in current business environments
• Development and implementation of a practical performance measurement system within an electronics manufacturing company

Zusammenfassung der Kapitel (Chapter Summaries)

The introduction outlines the thesis's intention to analyze existing supply chain performance measurement systems and evaluate their suitability for the electronics manufacturing industry. It also introduces the hypothesis that implementing a performance measurement system in collaboration with partners will lead to competitive advantages.

Chapter 2 delves into the evaluation of existing supply chain performance measurement systems. It defines Supply Chain Management, describes various systems like Tableau de Bord, Skandia Navigator, and Balanced Scorecard, and evaluates their suitability for current business environments. This chapter also explores the implementation of a balanced scorecard for supply chain performance measurement and its practical advantages.

Chapter 3 presents the hypothesis that implementing a supply chain performance measurement system in collaboration with partners will lead to competitive advantages within the supply chain. It outlines the approach and methodology for proving this hypothesis.

Chapter 4 focuses on the development of a supply chain balanced scorecard for an electronics manufacturing company. It examines industry-specific supply chain characteristics, defines a supply chain strategy, and implements the balanced scorecard. The chapter concludes with a verification of the performance measurement system's suitability.

Schlüsselwörter (Keywords)

The key focus topics and terms of this master thesis include supply chain performance measurement, electronics manufacturing industry, balanced scorecard, supply chain management, competitive advantage, collaboration, and sustainable business practices. The thesis examines the implementation and evaluation of a supply chain performance measurement system within the electronics manufacturing industry, highlighting the importance of collaborative approaches and sustainable business practices.

• College: University of Applied Sciences Kempten
• Grade: 1,3
• Author: Dipl.-Wirtsch.-Ing. Christian Biewald (Author)
• Publication Year: 2014
• Pages: 62
• Catalog Number: V282843
• ISBN (eBook): 9783656820291
• ISBN (Book): 9783656828655
• Language: English
• Tags: Supply Chain Management, Performance measurement, Balanced Scorecard, Electronics