A review on financial and non-financial measures of supply chain performance

This study ascertains the pertinent measures and metrics of supply chain performance through an extensive literature review. A total of 53 international peer-reviewed journal articles published between 2012-2021 were retrieved from Scopus, Emerald insight, Elsevier and Springer databases for review....

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Main Authors: Baraka Israel, Leticia Mahuwi, Beny Mwenda
Format: Article
Language:English
Published: Universitat Politècnica de València 2023-01-01
Series:International Journal of Production Management and Engineering
Subjects:
Online Access:http://polipapers.upv.es/index.php/IJPME/article/view/18797
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author Baraka Israel
Leticia Mahuwi
Beny Mwenda
author_facet Baraka Israel
Leticia Mahuwi
Beny Mwenda
author_sort Baraka Israel
collection DOAJ
description This study ascertains the pertinent measures and metrics of supply chain performance through an extensive literature review. A total of 53 international peer-reviewed journal articles published between 2012-2021 were retrieved from Scopus, Emerald insight, Elsevier and Springer databases for review. The articles reviewed were selected and categorised based on the approach, scope and contribution in assessing and ascertaining the measures and metrics of supply chain performance. Limited to the review of literature, this study provides a benchmark and approaches for ascertaining the level of supply chain performance from financial and nonfinancial perspectives. Throughout the review, the study found inventory turnover ratio, supply chain and logistics costs and cash flows reflected in terms of ROI, ROE, ROA, profit margin, working capital and assets as the prime financial measures of supply chain performance. Moreover, the study found customer satisfaction, delivery performance, quality services, enhanced relationships and competitive advantages as the key non-financial measures of supply chain performance. The study concludes and recommends the financial and non-financial measures as the appropriate approaches for ascertaining the level of supply chain performance. In order to appropriately ascertain the level of supply chain performance, performance measurement should be accounted for by all actors at each node of the supply chain, using the same approach, measures and metrics. Additionally, further studies are required to address the benefits and issues that impede supply chain performance and measurements across different sectors of the economy.
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spelling doaj-art-481c6bc2c437445a93362ad226bdb10a2025-08-20T01:47:21ZengUniversitat Politècnica de ValènciaInternational Journal of Production Management and Engineering2340-48762023-01-01111172910.4995/ijpme.2023.1879717987A review on financial and non-financial measures of supply chain performanceBaraka Israel0https://orcid.org/0000-0002-4969-3202Leticia Mahuwi1https://orcid.org/0000-0002-0604-2821Beny Mwenda2https://orcid.org/0000-0003-1357-9798College of Business EducationCollege of Business EducationColle of Business EducationThis study ascertains the pertinent measures and metrics of supply chain performance through an extensive literature review. A total of 53 international peer-reviewed journal articles published between 2012-2021 were retrieved from Scopus, Emerald insight, Elsevier and Springer databases for review. The articles reviewed were selected and categorised based on the approach, scope and contribution in assessing and ascertaining the measures and metrics of supply chain performance. Limited to the review of literature, this study provides a benchmark and approaches for ascertaining the level of supply chain performance from financial and nonfinancial perspectives. Throughout the review, the study found inventory turnover ratio, supply chain and logistics costs and cash flows reflected in terms of ROI, ROE, ROA, profit margin, working capital and assets as the prime financial measures of supply chain performance. Moreover, the study found customer satisfaction, delivery performance, quality services, enhanced relationships and competitive advantages as the key non-financial measures of supply chain performance. The study concludes and recommends the financial and non-financial measures as the appropriate approaches for ascertaining the level of supply chain performance. In order to appropriately ascertain the level of supply chain performance, performance measurement should be accounted for by all actors at each node of the supply chain, using the same approach, measures and metrics. Additionally, further studies are required to address the benefits and issues that impede supply chain performance and measurements across different sectors of the economy.http://polipapers.upv.es/index.php/IJPME/article/view/18797supply chain performanceperformance measurementsupply chain performance measures supply chain key performance indicator financial measuresnon-financial measures
spellingShingle Baraka Israel
Leticia Mahuwi
Beny Mwenda
A review on financial and non-financial measures of supply chain performance
International Journal of Production Management and Engineering
supply chain performance
performance measurement
supply chain performance measures
supply chain key performance indicator
financial measures
non-financial measures
title A review on financial and non-financial measures of supply chain performance
title_full A review on financial and non-financial measures of supply chain performance
title_fullStr A review on financial and non-financial measures of supply chain performance
title_full_unstemmed A review on financial and non-financial measures of supply chain performance
title_short A review on financial and non-financial measures of supply chain performance
title_sort review on financial and non financial measures of supply chain performance
topic supply chain performance
performance measurement
supply chain performance measures
supply chain key performance indicator
financial measures
non-financial measures
url http://polipapers.upv.es/index.php/IJPME/article/view/18797
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