Assessing Supply Chain Performance: A DEA Approach

Abstract

Supply chain faces challenges relating to the utilizations of resources as well as the competition. It is linked with supply chain members and hence the total system will be strengthened through integration and collaboration. In this globalisation era, it has been observed that there are growth and profit of an industry directly linked with a well-structured supply chain. The performance of supply chain management not only depends on the profit and growth but also linked with the customer satisfaction and long-term sustainability. For this problem, this study seeks to evaluate the measuring instrument for supply chain management that contribute towards the performance. So, performance of supply chain depends on the factors contributing towards logistic management, productivity management, customer service management as well as quality management. This research employs both qualitative and quantitative methods. A focused group discussion has carried out for the qualitative analysis of the study. Data were analyzed through DEA technique to evaluate the supply chain performance. The DEA methodology is useful for supply chain organizations to identify their position in relation to their peers and to develop strategies for improvement through the right mix of inputs and outputs. Benchmarking is a better option for improving the performance of individual firms, which can be analyzed using DEA techniques.