Balanced Framework for Measuring Performance of Supply Chains in House Building

Abstract

Despite its importance, performance measurement of supply chains of house building firms has not received much attention yet in academic literature. The objective of this study is to develop a framework to measure this performance. In a first step, a comprehensive framework is developed composed of five primary perspectives on the performance of supply chains in house building (i.e., financial, customer, internal business, external business, and innovation) with 35 corresponding performance indicators. In the second step, the practical value of the proposed supply chain performance indicators is evaluated on its level of clarity, measurability, and relative importance based on the feedback of senior purchasing managers of construction firms active in house building. The evaluation shows that the framework and its intended use are highly supported by these managers. In the final step, the management team of a medium-sized construction firm active in house building used the framework to assess the firm supply chain performance relative to their competitors. It was concluded that the tool was easily filled in and very helpful for gaining insights in the supply chain performance of the firm.