A proposed value model for prioritising supply chain performance measures

The purpose of this paper is to outline a new holistic approach for identifying and prioritising supply chain performance measures according to their importance in the evaluation of value-added activities in the entire supply chain. Analytic hierarchy process (AHP) technique was used for pairwise comparisons of main supply chain functions, processes and criteria. A questionnaire consisting of comparison tables of all functions was designed based on the AHP methodology and structured interviews were conducted with expert managers of four large Iranian companies. Total weights of each function and its processes in generating value towards the entire supply chain were calculated and their priorities were identified. Total weight of each criterion in evaluating the performance of supply chain was also calculated and a short list of the most important, practical and strategic performance measures is proposed to help managers and practitioners in analysing their supply chains.