Measuring retail supply chain performance : Theoretical model using key performance indicators (KPIs)

Purpose – A growing body of literature has begun in the direction of supply chain performance measurement. However, selecting the appropriate set of key performance indicators (KPIs) for measuring supply chain performance have always remained a challenge. The purpose of this paper is to identify the KPIs and categorize them specifically for measuring retail supply chain performance. Design/methodology/approach – A qualitative approach, based on literature has been adopted. Published literature from refereed journals on supply chain performance measurement has been considered and various approaches for developing KPIs have been studied to develop a theoretical framework for performance measurement in retail supply chain. Findings – The paper identifies key indicators for performance measurement and classifies them into four major categories: transport optimization, information technology optimization, inventory optimization and resource optimization. These key indicators are arranged precisely for retail industry. A theoretical framework is proposed to link the performance of these constructs on financial performance of the firm. Research limitations/implications – Future research can be carried out to validate the relevance and applicability of identified indicators. The study can be further conducted to measure the interrelationships between the KPIs and their impact on financial performance of the firm. Practical implications – This study proposes a list of indicators for retail industry, which are presented in appropriate categories so that it can be used by the focussed teams for further improvement. Originality/value – To the best of authors’ knowledge, no other study has categorized the KPIs into groups, specifically for measuring retail supply chain performance. The researcher also intends to carry out further empirical study to test the proposed theoretical framework.