Modelling Supply Chain Measurement in Omni-Channel Supply Chain

Abstract

Retail business has transformed into omni-channel retail, a modern approach utilizing multiple channels several years ago. The performance measurement used in the past which mainly focused on financial measures may not be applicable to omni-channel retail. This research aims to model a supply chain performance measurement framework for the omni-channel supply chain and to draw a relationship among performance measures and their association with the goals of resource efficiency, customer service level, and flexibility. Total Interpretive Structural Model (TISM), a qualitative modelling technique, is applied in the study for building links between measures. The experts were asked to complete the TISM questionnaires for interpretive logic-knowledge. Then, a hierarchical model with interpretive logic for the overall supply chain performance measurement framework was developed. An omni-channel supply chain was used as a case study, and the result showed that the relationships among measures including “demand forecast accuracy,” “planning accuracy,” “urgent order response speed,” “service reliability,” “cost,” and “information readiness” can lead to “efficiency,” “time for decision-making,” “market change response speed,” and “revenues.” The key contribution of this research is a structured performance measurement framework for omni-channel supply chain using TISM to identify and interpret the relationships among key performance indicators, particularly for the goals of efficiency, customer service, and responsiveness. Detailed strategies for improving supply chain performance have been provided. Lastly, theoretical and managerial implications are discussed, and recommendations for future research are presented.