Supply chain collaboration performance metrics: a conceptual framework

Abstract

Purpose Successful implementation of supply chain collaboration (SCC) by Wal‐Mart has encouraged many manufacturing companies, such as Procter & Gamble, Hewlett‐Packard Co, and West Marine Products Inc., to initiate collaboration. Subsequently, collaboration between suppliers and retailers has become a common practice in many recent supply chains. However, measuring the benefits of collaboration is still a big challenge. Based on supply chain literature and practice, this paper aims to propose a conceptual framework and a standard set of metrics to evaluate the performance of SCC. Design/methodology/approach The authors discuss two case studies to validate the proposed model. The case study discussions are appropriate to understand the usage of different performance metrics in initial and advanced stages of collaboration. Findings From the case study it is recognized that the collaborating members in the supply chain are not able to visualise all possible benefits of collaboration. To surmount this issue, the paper proposes a framework to study the performance of companies involved in initial and advanced stages of collaboration. Originality/value The classification suggested in this paper on different stages of collaboration and related metrics can guide researchers and practitioners in manufacturing companies to evaluate the performance of SCC.