A framework for logistics performance indicators selection and targets definition: a civil construction enterprise case

Abstract

Paper aims

This paper proposes a roadmap framework based on a literature review to choose the most proper indicators and targets for a given logistics process derived from the organization's strategic goals.

Originality

One of the many benefits from the introduction of technologies and the digitization of logistics processes is the acquisition of a great amount of data, which is a valuable asset for an efficient management. In order to transform this data into useful information, most companies rely on performance indicators. In this sense, this paper proposes a roadmap framework based on previous works to guide managers on how to choose a set of indicators that are linked to the company’s targets. To the best of our knowledge, no previous research has proposed a framework dealing with target definitions based on historical data and previous standards or benchmarking, as well as the logistics indicators choice based on the representation theory.

Research method

In order to elaborate the framework, a two-step structured literature review was carried out, combined with a case application. The literature review included steps based on the works of Govindan & Bouzon (2018) and Moher et al. (2009). The Scopus and the Web of Science databases were selected to gather material to base this study. The framework was applied in a Brazilian construction enterprise, located in Joinville city, Southern Brazil.

Main findings

The framework application showed that the methodology can facilitate the selection of indicators linked with the company’s strategic goals. Additionally, the indicators legitimation process with managers, a step from the framework, showed that managers' knowledge about the company’s processes is essential for a successful logistics performance system implementation. However, the managers can be resistant to changes for new indicators, and this situation should be avoided during the legitimation process. Future studies may expand the methodology application to other areas than logistics, and future applications of the framework in a Logistics 4.0 environment should provide more insights for the model.

Implications for theory and practice

From a theoretical perspective, a complete table of logistics performance indicators is provided, as well as the framework for indicators and target definition. From a practical panorama, the framework application shows that practitioners can use this study as a guide to develop more effective logistics performance measurement systems. Moreover, concluding remarks on the relationship between digital transformation and performance measurement systems are provided.

Keywords:
Logistics performance measurement; Indicators targets; Indicators properties; Digitalization; Literature review