Supply chain performance measurement system lifecycle

Purpose: this paper aims to provide a theoretical framework of the supply chain performance measurement system (SCPMS) lifecycle – highlighting key issues of the design, implementation, use, and review phases – and to investigate how the different actors involved in the SCPMS perceive the system and act to maximise expected outcomes. Design/methodology/approach: the phases of a SCPMS lifecycle are derived from extant literature on PMS and shaped coherently with the need to collect data from external sources and interact with SC partners. To answer the two research questions with a theory building approach, an in depth case study involving seven firms across three tiers of the mass retail SC has been developed. Findings: the actor sponsoring the system recognizes benefits in terms of higher control, SC strategy communication, and performance improvement. The lack of trust and interest in the system and the lack of industry standards on relevant performances are the main criticalities reported by SC partners. Several elements within the SCPMS lifecycle could increase the perceived effectiveness by various actors involved: engaging SC partners in the design phase; relying on a rigorous primary data collection; actively exploiting the tool through a systematic discussion on performance; establishing incentive/disincentives plans. Originality/value: the paper contributes to the conceptualization of SCPMSs and to the debate on the link between SCPMS adoption and performance improvement: apart from relationship specific attributes (e.g., trust, commitment, goal alignment), SCPMS lifecycle elements are suggested to affect performance in several respects.