Performance Measurement in Inventory System of an Iranian Automobile Manufacturing Company

The purpose of this research is establishing a context for continuous improvement of internal logistics in Iranian automotive industries through developing performance measurement indicators. The performance measurement of inventory processes in a leading automobile manufacturer in Iran was discussed as a case study of this research. Unlike previous researches in inventory performance management, our approach was applying a multitude of performance metrics such as the balanced scorecard and the four decision areas provided in Supply Chain Operation Reference (SCOR) model version 8.0. The four balanced scorecard perspectives formed a chain of cause-and-effect relationships to show the strategy map of Case Company. The configuration of supply chain using core process categories of level 2 SCOR was defined and the performance measurement indicators were developed via a multitude of balanced scorecard and SCOR model. Finally based on the SCOR model, balanced scorecard, interviews with industry experts, managers and observation, metric network for each strategic objective of Case Company was constructed and the decomposition of strategy into operational metrics was achieved. The proposed balanced indicators contribute to expand the company's ability to identify its shortcomings and can substantially improve the internal logistics in relation to the current situation.