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Delivery performance : How to define & measure delivery performance in a triadic relationship

by Hedin, Johan; Jonsson, Martin; Ljunggren, Johan

Abstract (Summary)
Problem discussion:When different companies join into triadic relationships it is important that the relationships are managed properly. Findings have indicated that components for a successful relationship are high level of trust and commitment, risk/reward sharing, joint planning. To improve a triadic relationship, the actors have to measure the overall performance. In the triadic relationship that we have investigated there is obvious problems with information sharing and measure the same variables regarding delivery performance.Research Question:How can delivery performance be measured in order to adapt it to a triadic relationship?Objective:Our objective is to describe delivery performance as well as explain and adapt it to a triadic relationship.Conclusions:Delivery performanceAlmost every customer in our questionnaire thinks it is important to measure delivery performance. We claim it is of great importance for a triad to create a common method to measure delivery performance, where every actor knows when, where and how to measure. The criterion for effective KPIs are to measure the overall supply chain performance rather than the performance of an individual chain member. That is why we claim the best way of getting better information about how the 3PL provider perform should be integrated in the measurement of the overall delivery performance of the triad. The most efficient way to measure the 3PL providers’ performance is the 3PL provider uses a scanning system and reports the measurements to SCA. The actors within the triad must also measure the delivery performance in financial and non financial terms. It is important for the triad to have the same perceptions regarding split deliveries, delivery window, dependability and flexibility. If the actors use the same method to measure delivery performance, the measurements will be reliable and useful for all actors within the triad.Triadic RelationshipWe claim that information sharing is very important. The studied triadic relationships show that if a supplier should measure what is important they have to know what is important for their customers. Another important aspect for the supplier is to have information about how the customers perceive the delivery performance.To be able to have a good service quality all service gaps should be analysed and closed. To be able to close the service gaps regarding delivery performance in a triadic relationship, information sharing is the key. There have to be collaboration between the different actors of the triad. Important tools to use if this should be possible are connected computer systems and shared information between all actors.
Bibliographical Information:

Advisor:

School:Växjö universitet

School Location:Sweden

Source Type:Master's Thesis

Keywords:delivery performance triadic relationship supply chain management kpi measure 3pl

ISBN:

Date of Publication:11/13/2006

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