System Measurement Research on Supply Chain

Supply Chain Management is the planning and controlling of the integration of the supply, production, storage, distribution, and sales functions in the most efficient and cost-effective manner to meet one´s service requirements. Due to the complexity induced by the large number of related and interdependent activities in the supply chain, coordinating activities in a supply chain, however, is difficult. System thinking offers a method for describing and analyzing problems in such contexts, and is therefore well suited to solving the complex and dynamic socioeconomic problems found in logistics systems today. In essence, those firms that have succeeded have adopted a holistic view of the supply chain, recognizing that the outcome that counts is that of the entire supply chain, not that of single organizations. Collaborating on performance measurements means, among other things, that the firms are getting closer to each other. It also means that the borders become less distinct. Getting access to information beyond a single firm makes it possible for firms to fight event explanations, and act in accordance with wider objectives, e.g. that of a supply chain.