PERFORMANCE DIMENSION IN AGRI-FOOD SUPPLY-CHAIN SYSTEMS Essay

PART 2

FUNCTIONALITY MEASUREMENT IN AGRI-FOOD

SUPPLY-CHAIN NETWORKS

A review

JACK G. A. L. VAN WELCHER VORST

Strategies and Functions Research Group, Wageningen University or college, Hollandseweg 1, 6706 KN Wageningen, The Netherlands

Abstract. A large number of researchers and practitioners are working on the improvement of supply-chain collaboration to be able to improve performance of the individual supply-chain members and supply-chain functionality as a whole. Overall performance measurement fulfils a crucial part in the progress supply stores as it can immediate the design and management from the chain towards required efficiency. It is the important instrument to discuss and measure the effectiveness of (potential) chain partnerships. This paper gives a structure for the development of innovative meals supply-chain networks and covers the effects for overall performance measurement devices. Current bottlenecks and exploration opportunities will be presented.

Keywords: performance symptoms; network search engine optimization; (bottlenecks and) research possibilities

INTRODUCTION

The value of functionality measurement is certainly recognized. Manufacturing and administration consultant Oliver Wright practically 30 years in the past offered the oft-repeated declaring, " You get the things you inspect, not what you expect” (Melnyk ain al. 2004). Metrics happen to be therefore had to evaluate just how work is completed and to direct the activities, as what we measure indicates the way you intend to deliver value to the customers. Completely wrong performance measurement systems (PMS) can create disincentives and unwanted behaviour.

The number of journals on efficiency measurement has increased significantly within the last decade (e. g. Beamon 1999; Lohman et al. 2004; Gunasekaran et ing. 2004). This is mainly because of any number of important changes in the business environment, particularly in agri-food organizations. Consumers in Western-European marketplaces have become more demanding make new demands on attributes of food such as quality (guarantees), integrity, safety, diversity and associated information (services). Require and supply shall no longer be restricted to C. J. M. Ondersteijn, M. H. M. Wijnands, Ur. B. M. Huirne and O. van Kooten (eds. ), Quantifying the agri-food supply sequence, 13-24.

В© 2006 Springer. Printed in the Netherlands

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J. G. A. J. VAN JEDER VORST

nations or regions but have become international processes. We see an increasing concentration in agribusiness industries, an enormous increase in cross-border flows of animals and food products and the creation of foreign forms of assistance. The food sector is becoming an interconnected system with a a large scale complex relationships, reflected on the market place by the formation of (virtual) Food Chain Systems (FSCNs) through alliances, horizontally and top to bottom cooperation, forwards and backwards integration in the supply string and continuous innovation (Beulens et ing. 2004). The latter encompass the expansion and setup of enhanced quality, logistics and information systems that enable more efficient execution of processes and more frequent exchange of huge amounts of information pertaining to coordination purposes (Van der Vorst et al. 2005). All these developments initiate a reorientation of companies in Dutch agriculture and food industry prove roles, actions and tactics. As a consequence also the PMS need adjustments as traditional measurement strategies may limit the possibilities to optimize the FSC(N) overall.

This newspaper presents a review of performance measurement in agri-food supply-chain networks. We all will initial go much deeper into the idea of FSCN. Next, we will certainly discuss a framework pertaining to chain/network expansion that will be accustomed to derive requirements for PMS. We will discuss bottlenecks of performance measurement in FSCN and conclude with an overview of research possibilities in this area. FOOD-SUPPLY-CHAIN NETWORKS

Supply-chain management (SCM) is the bundled planning, coordination and power over all...

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