The size of a logistics performance measurement system

Abstract

Purpose

One practical challenge in managing logistics performance concerns the size, or the number of actors involved, in a performance measurement (PM) system. The first objective of this paper is to describe and compare the advantages and disadvantages of four logistics performance measurement system sizes. The second objective is to develop a model of the factors affecting logistics PM system size.

Design/methodology/approach

This is a conceptual paper based on a literature review.

Findings

Internal PM systems were related to advantages connected with convenience and the avoidance of implementation problems. Disadvantages of an applied system were severe, especially in a supply chain context. Supply chain PM systems contained attractive advantages that can be reached with an applied system. However, a number of disadvantages in the shape of implementation problems must be handled. A model of the factors affecting the decision on logistics PM system sizes was developed. Power, purpose and implementation were found to be important factors. Five propositions were formulated.

Research limitations/implications

The contribution of this paper is mainly theoretical; the results remain unverified until empirical studies are conducted.

Practical implications

The paper can be seen as a first step towards new knowledge on how logistics PM system size is decided.

Originality/value

As little research exists in the area, this paper highlights the theoretical aspects of a practical challenge.

Citation

Forslund, H. (2011), "The size of a logistics performance measurement system", Facilities, Vol. 29 No. 3/4, pp. 133-148. https://doi.org/10.1108/02632771111109261