Framework for Performance Measurement System for Internal Supply Chain of Railways: A Study from Pakistan

Abstract

Internal Supply Chain is one of the most important activities of engineering extensive, geographically distributed organizations like Railways. Public Sector organizations have a different style of reference and need to be addressed by keeping in view its specific nature and terms of reference. The four key aspects of this study are a public organization, geographically distributed, engineering extensive and being a logistics service provider. The system of forward logistics and reverse logistics constitutes the internal supply chain of Pakistan Railways. The issue is both the activities were managed through a system designed around more than 90 years ago, that has evolved over the years, but the key performance indicators which in some cases are also known as key success indicators needs to be designed properly. The lack of a proper performance measurement system resulted in lack of realizing the importance of the process of internal supply chain in the whole organization. The purpose of this study is to fill in this gap and design a framework for performance measurement system specifically designed for Pakistan Railways Internal Supply Chain. The proposed performance measurement system is based on KPIs and is bifurcated in terms of forward logistics, and reverse logistics and are subdivided in Strategic, Tactical and Operational categories.