Measuring Supply Chain Performance Using SCOR Model And Setting Strategic Alternatives: The Case of Ethio Telecom Corporate Commercial Supplies Store.
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Date
2020-06
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Addis Ababa University
Abstract
Each organization for assessing the amount of utility and desirability of their activities, especially
in complex and dynamic environments such as in telecom industry where obsolescence of
technology becoming the headache of operators, determining and ranking the vital performance
indicators to ensure consistent supply is compulsory. The aim of this paper is to measure the SCP
of ethio telecom commercial supplies and to set an alternative strategy, which identifies and
prioritizes Key Performance Indicators (KPIs) that a company should focus on them thereby to
define the strategy found best in alignment of these KPIs to enable achieving organizational
objectives. Next, performance indicators were listed and pair wise comparisons were
accomplished by company's selected employees through SCP and standard Analytic Hierarchy
Process (AHP) questionnaires. Mainly a hybrid of AHP and TOPSIS technique applied to
minimize the weakness of individual performance of each and to capitalize the synergy effect of
both in that from AHP to take weight determination feature and from TOPSIS the swift ranking
capability. Hence, this research focused to illustrate relative importance of supply chain
performance measurement metrics and setting of evaluation framework to guide strategists for the
SC strategy selection and development to enhancing profitability of the company and ensure
business continuity with competitive environment. To do this qualitative and quantitative data was
obtained from selected respondents which have direct link and involvement in the commercial
supply pipeline. Based on the research, Supply Chain Operation Reference (SCOR) performance
measurement model with pair-wise comparison of Analytical Hierarchy Priority (AHP)
methodology and TOPSIS- Technique For Order Preference By Similarity To Ideal Solution are
developed to enhance the performance measurement of the supply chain management system. In
this paper, an AHP–TOPSIS–SCOR integrated approach for selection of the most suitable
scenarios are introduced and the implementation process be explained with a primary data from
the survey conducted. It involves the calculation of the closeness coefficients by means of Positive
Ideal Solution (PIS), Negative Ideal Solution (NIS) and the separation distance di. The
fundamental concept of this technique is that the chosen alternatives should have the shortest
distance di to the positive ideal solution and the farthest distance from the negative ideal solution.
accordingly the closeness index Ci+ is therefore the measure of the performance of the alternatives
whose value range between ‘0’ and ‘1’ ; the more Ci close to 1, the more alternative performs
best and vice versa. Alternatives are then ranked according to the computed closeness coefficients.
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In the study, candidates were assessed by three alternatives in accordance with fourteen decision
criteria. From the study, the integration of TOPSIS with AHP method found to be extremely suited
to evaluation and selection decisions regarding options for SC strategy selection. In the
application, the criteria/and sub-criteria, which have the greatest effect on the strategy selection,
are determined. The weighted sum model (WSM) was also applied to determine the delivery
performance status of the case company with respect to the industry standard and that gives a
good insight how is the case company performing its supply chain.
Key Words: Supply chain performance measurement, Supply Chain Operation Reference (SCOR),
Analytical Hierarchy Process (AHP), SCOR+AHP performance measurement framework,
(di)
Description
Keywords
Technique For Order Preference, Similarity To Ideal Solution, Weighted sum model closeness index, separation distance