Financial performance measurement of supply chains: a review

PurposeThis study provides a systematic review on performance measurement of supply chains from a financial perspective.Design/methodology/approachThis study systematically reviews the financial performance measures of supply chains. More specifically, this research reviews a total of 100 papers pub...

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Bibliographic Details
Published in:International journal of productivity and performance management 2022-05, Vol.71 (5), p.1674-1707
Main Authors: Rahiminezhad Galankashi, Masoud, Mokhatab Rafiei, Farimah
Format: Article
Language:English
Subjects:
Competitive advantage
Efficiency
Performance assessment
Performance evaluation
Performance management
Performance measurement
Return on investment
Suppliers
Supply chain management
Supply chains
Trends
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Summary:PurposeThis study provides a systematic review on performance measurement of supply chains from a financial perspective.Design/methodology/approachThis study systematically reviews the financial performance measures of supply chains. More specifically, this research reviews a total of 100 papers published in more than 50 peer-reviewed journals. The reviewed papers are categorized into three major areas of engineering, business and management. Additionally, the papers are investigated based on country, journal frequency, applied methods, publication date and research type (application or developmental).FindingsAccording to the obtained results, cost, return on assets (ROA), sales, asset turnover, return on investment (ROI), market share, inventory turnover, profit margin, revenue growth, economic value added (EVA) and cash-to-cash cycle are the most common metrics of financial performance measurement. Next, a framework is developed based on different categories of performance measurement and decision levels of the supply chain. Finally, some research directions are suggested to be further investigated by other scholars.Originality/valueAlthough available studies on supply chain performance measurement are very vast and comprehensive, the majority of the studies have neglected to highlight the importance of financial measures. In other words, with the advent of nonfinancial measures, however, the majority of supply chain managers still prefer to consider financial issues in their performance assessment process.
ISSN:1741-0401
1758-6658
DOI:10.1108/IJPPM-11-2019-0533