Measuring collaboration effectiveness in globalised supply networks: A data envelopment analysis application

Abstract

Logistics as an arm of the Supply Chain Management (SCM) concept of functional integration of processes between firms in business partnerships is not new, yet it has been invigorated by globalisation and modern Information Communication Technologies (ICT). The end-to-end Supply Chain (SC) is a virtual and physical reality which many believe can provide sustained competitiveness through added value to customers, operational efficiencies and strategic capabilities in a global economy. This Supply Chain Network (SCN) provides an opportunity to develop models which explain (i) the dynamics, complexities and processes of integration as supported by ICT and (ii) the customised relationships necessary for a collaborative strategy to succeed. There is much literature on the former but a dearth on the latter. This paper presents a development in performance measurement of some logistics factors in a SC by using the Data Envelopment Analysis (DEA) algorithm, a non-parametric widely applied operations research technique.