The purpose of this paper is to report the use of performance metrics among 121 Brazilian agribusiness companies, with the aim of helping accountants and academics to understand the actual use of performance metrics in non-integrated supply chains (SCs).
To identify which performance metrics are used among SC partners, four independent clusters representing specific SC roles (input suppliers, farmers, distributors, and retailers) were formed. Data relating to 49 performance metrics were collected by questionnaire and analyzed statistically to isolate common measures.
It was found among suppliers, farmers, distributors, and retailers that the performance metrics for return on investment, responsiveness, and response time to clients are not being used whereas customer satisfaction obtained a usage pattern in all roles in the four groups. Hence, it appears that customer satisfaction rather than financial sustainability is the driver for discussion between SC partners.
Although limited to a sample of firms within Brazil, the findings confirm evidence from similar SCs worldwide.
These findings suggest that the common metrics approach to measure SC performance may be very difficult to achieve in practice and other alternatives should be investigated by management accountants.
A predominance of customer satisfaction metrics to the exclusion of discussions on financial performance between partners in agri-food SC has implications for the sustainability of the industry and the ability of accountants and managers to negotiate when faced with increasing input costs.
This study contributes to the accountants’ understanding of how performance measurement works in fragmented SCs, whereas the majority of the literature is concerned with the integrated SCs.
This research project is sponsored by the Coordination of Improvement of Higher Education Personnel (CAPES) in Brazil.
Cunha Callado, A.A. and Jack, L. (2017), "Relations between usage patterns of performance indicators and the role of individual firms in fresh fruit agri-food supply chains", Journal of Applied Accounting Research, Vol. 18 No. 3, pp. 375-398. https://doi.org/10.1108/JAAR-04-2016-0037Download as .RIS
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