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Article
Publication date: 15 August 2019

Dian Prama Irfani, Dermawan Wibisono and Mursyid Hasan Basri

Logistics systems used in companies that perform multiple roles are expected to be able to manage conflicting objectives. Nevertheless, the literature suggests that many…

Abstract

Purpose

Logistics systems used in companies that perform multiple roles are expected to be able to manage conflicting objectives. Nevertheless, the literature suggests that many existing logistics performance measurement system (PMS) frameworks are not optimized to provide mechanisms to reveal dynamic relationships between conflicting performance indicators. The purpose of this paper is to develop a new logistics PMS by linking the system dynamics model with a set of balanced performance indicators.

Design/methodology/approach

The logistics PMS is developed through a literature review and case study of a company that plays multiple roles. The interrelationships between logistics factors and their links to end results are modeled in diagrams through in-depth interviews with stakeholders. The developed model is then used to build a simulation tool to analyze factors that cause poor performance.

Findings

The new logistics PMS developed by incorporating system dynamics offers decision makers ways to identify dynamic relationships among factors and conflicting indicators, in turn helping them to understand holistic logistics performance, objectively analyze why logistics systems perform in a certain way and foster a common shared view.

Practical implications

Stakeholders of companies that play multiple roles can use the new PMS model to comprehensively evaluate the performance of logistics systems. In addition, the increased visibility of logistics systems may support decision-making while preventing local optimization.

Originality/value

A logistical PMS based on the system dynamics model for managing logistics systems in companies performing multiple roles has not yet been identified. This paper fills this theoretical gap and contributes to the academic literature by proposing a novel PMS model based on the system dynamics model to address the limitations of existing PMS frameworks.

Details

Measuring Business Excellence, vol. 23 no. 3
Type: Research Article
ISSN: 1368-3047

Keywords

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Article
Publication date: 24 October 2019

Dian Prama Irfani, Dermawan Wibisono and Mursyid Hasan Basri

Transport logistics systems in companies with additional public service roles are complex and could benefit from new approaches to performance management. Existing…

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Abstract

Purpose

Transport logistics systems in companies with additional public service roles are complex and could benefit from new approaches to performance management. Existing approaches tend to be fragmented; thus, the purpose of this paper is to integrate balanced performance measures, a dynamics model, and the problem-solving method into a new model.

Design/methodology/approach

An integrated framework is developed by reviewing literature and synthesising attributes of performance measurement systems, system dynamics and problem-solving methods. The framework is then applied to a multiple-role company’s sea transportation system. The study uses statistical methods to identify performance indicators, management interviews with document study to develop a dynamics model, and simulation methods to formulate an improvement plan.

Findings

The performance measurement design stage allowed for the identification of balanced, aligned performance indicators, while the system dynamics model illuminated the impact of the system components’ interrelationships on performance output. The problem-solving method allowed for analysis of system performance, identification of constraints and formulation of a performance improvement plan.

Practical implications

This framework can help transport logistics system stakeholders in multiple-role companies avoid silo thinking, misaligned performance objectives, local optima and short-term solutions.

Originality/value

This study contributes to the existing body of research by introducing a novel framework integrating performance measurement, system dynamics and the problem-solving method. It also addresses a theoretical gap by showing how interconnecting components of sea transportation systems affect transport logistics performance.

Details

International Journal of Productivity and Performance Management, vol. 69 no. 5
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 25 March 2019

Dian Prama Irfani, Dermawan Wibisono and Mursyid Hasan Basri

Companies with multiple roles, as both a profit generator and public service provider, have specific characteristics that differentiate them from single-role companies…

Abstract

Purpose

Companies with multiple roles, as both a profit generator and public service provider, have specific characteristics that differentiate them from single-role companies. However, literature suggests that no performance measurement framework exists to fully suit the characteristics of such companies. This study aims to develop a novel performance-measuring framework to manage logistics performance in multiple-role companies.

Design/methodology/approach

The framework is developed by combining a literature review and a case study approach as applied to a company with multiple roles. The case study is conducted to identify the characteristics of multiple-role companies, the factors that potentially affect such companies’ logistics performance and criteria for a new framework. The literature review identifies the concepts, performance attributes and indicators from existing frameworks with the potential for incorporation and synthesis in the new framework.

Findings

This study identified several characteristics, performance drivers and criteria for a logistics performance-measuring framework for multiple-role companies. Additionally, this study successfully developed a new logistics performance-measuring framework that consists of eight performance management stages and an aggregated index to measure overall logistics performance.

Practical implications

The proposed logistics performance-measuring methodology provides useful guidance for stakeholders of multiple-role companies to plan, organize, execute and evaluate logistics performance.

Originality/value

This research fills a theoretical gap by explaining the characteristics of logistics systems in multiple-role companies, as well as the factors that may affect such companies’ logistics performance. Further, the proposed framework contributes to academia by integrating performance attributes from several available frameworks to manage objective conflicts, dynamism issues and the inconsistent performance evaluations that exist in companies with multiple roles.

Details

Measuring Business Excellence, vol. 23 no. 2
Type: Research Article
ISSN: 1368-3047

Keywords

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