Supply chain performance measurement system framework for end-to-end process-based organizations.

Abstract

Organizations can be analyzed and managed according to two different perspectives: the first one, called functional view is based on structural divisions and departments and the second one, named business processes view, which try to avoid these functional silos and involve resources from different departments. The functional perspective is based primarily on the organization chart of a company, where activities or functions are grouped according to their similarity (e.g. All activities related to sales are grouped in an area called "Sales"), companies operating with this approach tend to allocate individual resources and implement improvement programs focused on increasing efficiency and effectiveness of each department. In contrast, the business process approach is oriented to analyze the interaction between several departments of an enterprise with the aim of deliver a product or customer service; customers interact with companies through business processes (For example, consider a process which contains the following activities: hiring/requesting a product/service, receiving the product/service, paying and receiving after-sales services, this process involves several departments: Sales, Operations, Finance, among others); companies working under this approach have a greater tendency to create value, innovate, and enable collaboration and interaction with customers, partners and suppliers.