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Internal benchmarking for assessment of supply chain performance

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Purpose ‐ In global scenario, many organizations own supply chains, which operate in different countries. The performance of these supply chains, owned by the same organization must be same if they operate in countries with similar economical, political, and social conditions. In this paper, an effort has been made to propose a methodology for the internal benchmarking to reduce the variability in performance among supply chains of same focal firm. The proposed methodology of internal benchmarking for assessment of supply chain performance demonstrated through a case supply chain. Design/methodology/approach ‐ A case of global supply chains is presented in which a focal firm owns three supply chains operating in three different countries. In order to assess and improve the performance of these supply chains relative to each other, a benchmarking methodology is proposed. Findings ‐ An extensive use of performance value analysis (PVA) and strength, weaknesses, opportunities, and threats (SWOT) analysis provided good diagnosis of supply chains. This analysis can be very useful in leveraging the supply chain drivers of various supply chains belonging to same focal organization and hence bring performance of all the supply chains at the same performance level. Originality/value ‐ According to the authors' knowledge, there is no paper in the literature, which discusses the application of PVA and SWOT analysis for internal benchmarking in supply chain management and it is believed that it will be useful for supply chain managers to apply such tools to lead global development in their supply chains.
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Keywords: Benchmarking; Performance measures; SWOT analysis; Supply chain management; Value analysis

Document Type: Research Article

Publication date: 2010-01-01

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