A Composite Indicator for Supply Chain Performance Measurement: A Case Study in a Manufacturing Company

Abstract

This paper proposes a methodology to develop and implement a Composite Indicator (CI) to measure the performance of Supply Chain processes. It reflects the aggregation of individual measures, related to the same process, with a weighted average, in order to assess the global performance in terms of both efficiency and effectiveness. Through a case study in a manufacturing company, a concept validation was performed by implementing the methodology in the Return process of the Supply Chain. The results showed that the combination between a Composite Indicator and a Business Intelligence tool provides a better understanding of the overall performance of a given process, facilitating also the identification of root causes. This paper aims to contribute to the supply chain performance management research field, proposing a methodology to implement a Composite Indicator, which is a topic insufficiently explored in the existent literature.