Table 3 Performance measurement factors...

Table 3

Performance measurement factors

Code	Factor	Performance metric	Definition	References
PF1	Planning	Material requirements	Effective planning and control of goals allow companies to achieve effective resource utilization. Supply chain planning is “the management of activities related to supply and demand to minimize mismatches and therefore create and capture value”. For agribusiness involves the integrated determination and scheduling of resources, advised cultivation, harvest, distribution, storage and guarantee total income	Hajimirzajan et al. (2021), Govindan et al. (2017), Srinivasan and Swink (2015), Quesada et al. (2012)
		Production
		Financial
PF2	Supplier performance	Efficiency	Buyers and suppliers are increasingly dependent upon each other as a strategic commitment rather than opportunist for mutual benefit. Key business and competitive priorities are often expressed through supplier performance specifications, coordination between buyer-supplier and work statements. Procurement and purchasing relationships in the food context have specific characteristics due to the complexity arising from the features of food production, processing, distribution and consumption	Kumar et al. (2020), Lees et al. (2020), Kumar and Routroy (2018), Iqbal and Shalij (2016), Handfield et al. (2015), Huang et al. (2014)
		Response time
		Price
PF3	Finance	Profit margin/gross profit	Measures of how well the resources are utilized, including profit margin, cash flow improvement, and tracking and managing costs, help companies understand where the money is spent. It measures how effectively the agri-food firm uses its capital to generate profit	Shalij and Iqbal (2016), Bottani and Bigliardi, (2014), Elrod et al. (2013), Najmi and Makui (2012), Aramyan et al. (2007)
PF3	Finance	Cash flow improvement
PF4	Production	Production errors	Manufacturing firms themselves may cause supply chain inefficiencies due to technical, internal or environmental factors at the production level that reduce performance. For agri-food products, inefficiencies can also be related to a shortage of skilled employees, productivity problems, quality failure and weather-related factors such as rainfall, temperature and drought	Alora and Barua (2019), Bottani and Bigliardi (2014), Hachicha and Elmsalmi (2014), Punniyamoorthy and Thamaraiselvan (2013), Quesada et al. (2012)
		Activity time
		Costing processes
PF5	Demand	Forecasting accuracy	This factor quantifies demand factors such as variability, market competition and customer fragmentation. Responding quickly to changes in demand is almost a competitive priority in dynamic business environments. An agri-food chain can impact unanticipated/very volatile customer demand, insufficient/distorted information from customers and changes in food safety requirements	Quang and Hara (2017), Panjehfouladgaran and Yusuff (2016), Ralston et al. (2015), Bhat and Kumar Sharma (2014), Thakkar et al. (2013)
PF5	Demand	Market share
PF6	Inventory	Inventory cost	The inventory measure includes diverse components: raw materials, work in process, finished goods and items demanded by the supply chain system. Costs related to inventory on hand can assist in inventory reductions, thus reducing warehouse and inventory costs. It is very crucial that executives in the organizations have to adopt the mindset of keeping inventory costs at a minimum level	Modgil and Sharma (2017), Bottani and Bigliardi (2014), Elrod et al. (2013)
PF7	Transportation	Stock turnover	Transportation performance measures include shipping failures known in Peru: roads, lack of resources, logistics distribution error between retailers and fleet utilization, and transportation risk related to factors such as antiquated vehicles, extended routes, deficient highway conditions and minimal pay. The transportation management definition includes inbound, outbound, internal and external movements	Swanson et al. (2018), Rogers et al. (2016), Bottani and Bigliardi (2014)
PF7	Transportation	Stock outs
PF8	Warehouse	Warehouse management cost	Warehouse management includes all planning and control procedures to operate the warehouse, including rising energy costs, inadequate infrastructure conditions and lack of services. Also, it includes the identification of storage costs, which presents opportunities for further cost minimization	Rogers et al. (2016), Bottani and Bigliardi (2014), Faber (2013), Elrod et al. (2013)
PF9	Flexibility	Order flexibility	These are associated with human judgment and response; this could emerge in the form of errors in inventory management, planning, food distribution management and forecasting. The need for flexibility originates from clients, who force companies to respond faster to customer needs; this helps sustain competitive advantage. Each of these components is interpreted differently by individual stakeholders of the agri-food chain	Yeboah Nyamah et al. (2017), Iqbal and Shalij (2016), Elrod et al. (2013), Xiao (2015), Najmi and Makui (2012), Quesada et al. (2012)
PF9	Flexibility	Delivery flexibility
PF10	Quality	Product quality	This metric includes product and process quality, service quality, the performance of all inspections and tests, sustainability, and environmental considerations. Quality is not only related to the product but also related to services. For agri-food, the quality control level involves both agricultural production and food processing	Shalij and Iqbal (2016), Quesada et al. (2012), Najmi and Makui (2012)
		Process quality
		Service quality
PF11	Innovation	Number of process innovation developed	Measuring innovation provides insights into changes, initiatives and improvements which the company needs to achieve its vision. Product innovation is the introduction of a good or service that is new or has significantly improved characteristics or intended uses; a process innovation refers to the implementation of a new or significantly improved production or delivery method. Innovations span the entire food system, from food production, processing and consumption to waste stream management	Swanson et al. (2018), Bottani and Bigliardi (2014), Chalyvidis et al. (2013), Najmi and Makui (2012)
PF11	Innovation	Time for new product development
PF12	Customer service	Delivery timeliness	Customer service plays a vital role in the performance of the supply chain. An adequate supply chain has to satisfy the expectations of the customer. Actual service, as perceived by the customer, must exceed expectations to create delight. Food chains also have to take into consideration regulations and international standards	Iqbal and Shalij (2016), Iijima and Azuma (2015), Bottani and Bigliardi (2014), Chalyvidis et al. (2013), Najmi and Makui (2012)
		Response time to customer queries
		Order compliance

Code	Factor	Performance metric	Definition	References
PF1	Planning	Material requirements	Effective planning and control of goals allow companies to achieve effective resource utilization. Supply chain planning is “the management of activities related to supply and demand to minimize mismatches and therefore create and capture value”. For agribusiness involves the integrated determination and scheduling of resources, advised cultivation, harvest, distribution, storage and guarantee total income	Hajimirzajan et al. (2021), Govindan et al. (2017), Srinivasan and Swink (2015), Quesada et al. (2012)
		Production
		Financial
PF2	Supplier performance	Efficiency	Buyers and suppliers are increasingly dependent upon each other as a strategic commitment rather than opportunist for mutual benefit. Key business and competitive priorities are often expressed through supplier performance specifications, coordination between buyer-supplier and work statements. Procurement and purchasing relationships in the food context have specific characteristics due to the complexity arising from the features of food production, processing, distribution and consumption	Kumar et al. (2020), Lees et al. (2020), Kumar and Routroy (2018), Iqbal and Shalij (2016), Handfield et al. (2015), Huang et al. (2014)
		Response time
		Price
PF3	Finance	Profit margin/gross profit	Measures of how well the resources are utilized, including profit margin, cash flow improvement, and tracking and managing costs, help companies understand where the money is spent. It measures how effectively the agri-food firm uses its capital to generate profit	Shalij and Iqbal (2016), Bottani and Bigliardi, (2014), Elrod et al. (2013), Najmi and Makui (2012), Aramyan et al. (2007)
PF3	Finance	Cash flow improvement
PF4	Production	Production errors	Manufacturing firms themselves may cause supply chain inefficiencies due to technical, internal or environmental factors at the production level that reduce performance. For agri-food products, inefficiencies can also be related to a shortage of skilled employees, productivity problems, quality failure and weather-related factors such as rainfall, temperature and drought	Alora and Barua (2019), Bottani and Bigliardi (2014), Hachicha and Elmsalmi (2014), Punniyamoorthy and Thamaraiselvan (2013), Quesada et al. (2012)
		Activity time
		Costing processes
PF5	Demand	Forecasting accuracy	This factor quantifies demand factors such as variability, market competition and customer fragmentation. Responding quickly to changes in demand is almost a competitive priority in dynamic business environments. An agri-food chain can impact unanticipated/very volatile customer demand, insufficient/distorted information from customers and changes in food safety requirements	Quang and Hara (2017), Panjehfouladgaran and Yusuff (2016), Ralston et al. (2015), Bhat and Kumar Sharma (2014), Thakkar et al. (2013)
PF5	Demand	Market share
PF6	Inventory	Inventory cost	The inventory measure includes diverse components: raw materials, work in process, finished goods and items demanded by the supply chain system. Costs related to inventory on hand can assist in inventory reductions, thus reducing warehouse and inventory costs. It is very crucial that executives in the organizations have to adopt the mindset of keeping inventory costs at a minimum level	Modgil and Sharma (2017), Bottani and Bigliardi (2014), Elrod et al. (2013)
PF7	Transportation	Stock turnover	Transportation performance measures include shipping failures known in Peru: roads, lack of resources, logistics distribution error between retailers and fleet utilization, and transportation risk related to factors such as antiquated vehicles, extended routes, deficient highway conditions and minimal pay. The transportation management definition includes inbound, outbound, internal and external movements	Swanson et al. (2018), Rogers et al. (2016), Bottani and Bigliardi (2014)
PF7	Transportation	Stock outs
PF8	Warehouse	Warehouse management cost	Warehouse management includes all planning and control procedures to operate the warehouse, including rising energy costs, inadequate infrastructure conditions and lack of services. Also, it includes the identification of storage costs, which presents opportunities for further cost minimization	Rogers et al. (2016), Bottani and Bigliardi (2014), Faber (2013), Elrod et al. (2013)
PF9	Flexibility	Order flexibility	These are associated with human judgment and response; this could emerge in the form of errors in inventory management, planning, food distribution management and forecasting. The need for flexibility originates from clients, who force companies to respond faster to customer needs; this helps sustain competitive advantage. Each of these components is interpreted differently by individual stakeholders of the agri-food chain	Yeboah Nyamah et al. (2017), Iqbal and Shalij (2016), Elrod et al. (2013), Xiao (2015), Najmi and Makui (2012), Quesada et al. (2012)
PF9	Flexibility	Delivery flexibility
PF10	Quality	Product quality	This metric includes product and process quality, service quality, the performance of all inspections and tests, sustainability, and environmental considerations. Quality is not only related to the product but also related to services. For agri-food, the quality control level involves both agricultural production and food processing	Shalij and Iqbal (2016), Quesada et al. (2012), Najmi and Makui (2012)
		Process quality
		Service quality
PF11	Innovation	Number of process innovation developed	Measuring innovation provides insights into changes, initiatives and improvements which the company needs to achieve its vision. Product innovation is the introduction of a good or service that is new or has significantly improved characteristics or intended uses; a process innovation refers to the implementation of a new or significantly improved production or delivery method. Innovations span the entire food system, from food production, processing and consumption to waste stream management	Swanson et al. (2018), Bottani and Bigliardi (2014), Chalyvidis et al. (2013), Najmi and Makui (2012)
PF11	Innovation	Time for new product development
PF12	Customer service	Delivery timeliness	Customer service plays a vital role in the performance of the supply chain. An adequate supply chain has to satisfy the expectations of the customer. Actual service, as perceived by the customer, must exceed expectations to create delight. Food chains also have to take into consideration regulations and international standards	Iqbal and Shalij (2016), Iijima and Azuma (2015), Bottani and Bigliardi (2014), Chalyvidis et al. (2013), Najmi and Makui (2012)
		Response time to customer queries
		Order compliance

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