In order to be able to assess the success of supply chains, an
adequate performance measurement system (PMS) needs to be
developed. In this study, a PMS is defined as a system that
enables a firm to monitor the relevant performance indicators of
products, services and production processes in the appropriate
time frame (Rosenau et al., 1996). Performance indicators are
the criteria with which the performance of products, services
and production processes can be evaluated. Besides,
performance indicators are operationalized process
characteristics, which compare the efficiency and/or
effectiveness of a system with a norm or target value (Van der
Vorst, 2000). A PMS comprises systematic methods of setting
business goals together with periodic feedback reports that
indicate progress against those goals (Simons, 2000). PMS
informs decision makers whether they are meeting their goals,
whether customers are satisfied and whether and where
improvements are necessary.
In order to improve performance of the entire supply chain
there is a need to look outside the boundaries of individua