Design a performance measurement system: Metrics to identify the most critical indicators according to operative policies

Supply Chain Management (SCM) literature review shows a great research effort in analysing relationship between SCM strategies and Performance Measurement Systems. Indeed, one of the most common issue in Supply Chain Management is, not being able to find the right strategy for decision-makers' own organization features. In order to be effective, the process of SCM strategy definition, requires the identification and the measurement of a proper set of Performance Indicators. Those PIs can help stakeholders displaying system current state, which is the first step to define scenario goals and prioritization for the organization. Aims of this preliminary analysis is to study which criteria affect the choice of most fitting PIs for a manufacturing company. Thus, after the evaluation of criteria that could influence the relevance of some PIs of the Performance Measurement System, the paper will show how to choose a set of KPIs, through the ranking of PIs. The study will refer to the PI set proposed by the Supply Chain Operations Reference (SCOR), which is widely considered the most fitting performance model for manufacturing context. In order to describe the process of choosing the proper KPIs through the proposed approach, an industrial application for a fashion luxury company is presented. In particular, SCOR PIs were evaluated according to the company's product portfolio, considering novelty and collection belonging, which are considered two of the most relevant criteria for classifying products in the fashion industry.