Key characteristics for designing a supply chain performance measurement system

Purpose - The purpose of this paper is to conduct a review of the literature that gives insight into design elements for constructing a supply chain performance measurement (SCPM) system. Design/methodology/approach - A systematic review of published research on SCPM systems and frameworks over the last two decades was conducted with the purpose of categorising key functions of SCPM systems by providing an insight into the design, functionality, implementation and practical implications of SCPM systems. Findings - The review revealed a set of functions governing the SCPM system that have not been fully explored in previous research: the process focus, prioritisation, integration and causality functions of a SCPM system. A relationship between two or more functions can be created to include more functionality based on the needs of the company to create a comprehensive performance measurement system. Research limitations/implications - The paper concludes with a conceptual framework to guide future research in the area of designing a SCPM system and define the main aspects that should be considered when developing a SCPM system. Practical implications - The paper brings a new dimension to the SCPM research by identifying the main functions of SCPM systems that could benefit practitioners to set up a SCPM system relevant to its intended function. The paper presents multiple potential stages of merging different functions in one SCPM system. Based on the company’s needs and context, the functionality of the SCPM system can be designed at four levels creating ten possible scenarios when designing a company’s SCPM system. Originality/value - The paper integrated the literature and findings of 269 research papers of the last two decades, upon which a conceptual framework was developed as a guide for constructing an effective SCPM system.