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Performance measurement is a fundamental building block of successful organizations. A well designed performance measurement framework ensures both; sustainability of success and continuous improvement of performance. The objective of supply chain management is to create value for the whole supply chain network, including the end customers, not only for some entities within the chain. Many drawbacks prevent the conventional performance measurement systems from making a significant contribution to the development and improvement of the supply chain management. In an attempt to fill this gap, an enhanced process-based approach for measuring, managing and hence improving supply chain performance is developed. The proposed framework is dynamic, continuous and hybrid. It integrates various sciences, methodologies and tools namely; Systems Thinking, Strategic Planning, Optimization, Fuzzy Logic, Trend Impact Analysis, Balanced Scorecards, SCOR model and Theory of Constraints Thinking Processes into a cohesive performance measurement system. The proposed framework can be generalized and applied to other systems similar to supply chains in key characteristics and dimensions of complexity.
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