Supply Chain Network Design Focused on Financial Measures and Performance Metrics: a Systematic Literature Review

Abstract

Through an extensive literature review, this study determines which metrics and measures are relevant for supply chain (SC) performance. We reviewed several universal papers published between 2012 and 2023. A selection of review papers was made according to the methods, contribution, and scope for measuring SC performance metrics and measures. By reviewing the literature, this survey prepares benchmarks and approaches for determining SC performance from a financial viewpoint. As core financial measures of SC performance, we investigation looked at inventory turnover ratios, logistics costs, and cash flows expressed as return on investment (ROI), return on equity (ROE), return on asset (ROA), profit margins, assets/liabilities, and working capital. Additionally, the study determined that key non-financial measures of SC performance are customer satisfaction, delivery performance, quality services, improved relationships, and competitive advantages. According to the study, the appropriate approaches for assessing SC performance are financial and non-financial measures. Using the same approach, measures, and metrics at all SC nodes is essential to determine SC performance appropriately. Moreover, research is needed to identify the benefits and issues preventing SC measurements and performance across different industries.