A Benchmarking Framework for Supply Chain Collaboration: A Data Envelopment Analysis (DEA) application

Abstract

The objective of this study is to propose a method to measure the extent of collaboration and trust in a supply chain as important components of organizational behavior that contribute to the performance improvement of supply chain
The proposed model for collaboration can be classified on the basis of functional Supply Chain processes or Supply Chain relationship. A Data Envelopment Analysis (DEA) is introduced to evaluate the level of collaborative practices. The study uses quantitative data from a case study which shows the use of performance measurement-based DEA in a collaborative supply chain network. The finding of this study indicates that the corporate managers in non-performing Decision Making Units have a challenge that need to be improved. The major implication of these can be summed up as following: the underperforming RDs have measures of their own under-achievement enumerated. An examination of the input and output factors against the same factors of the best performers can provide managers with good strategies that should concrete the way forward. This provides an opportunity for individual RD improvements with the result that the Supply Chain improves. The limitation of the framework presented in this paper is that it is explanatory and based on work that has been investigated elsewhere. Some of the difficulties in the methodological problems of that work would be expected here: the choice of the Decision Making Units and the exact input and output factors would be important to the measurement outcome and to the effectiveness of Data envelopment analysis’s ability to discriminate efficient from non-efficient Decision Making Units. Through this study, Supply chain managers will be able to assess the extent of their collaboration and seek improvement in their performance. This paper contributes to the existing literature by proposing a new performance measurement for assessing the extent of supply chain collaboration. This instrument can be used by any Supply Chain member to identify the level of collaboration and seek amelioration.