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Logistics Performance Measurement for Sustainability in the Fast Fashion Industry

In: Next Generation Supply Chains: Trends and Opportunities. Proceedings of the Hamburg International Conference of Logistics (HICL), Vol. 18

Author

Listed:
  • Cagliano, Anna Corinna
  • Mustafa, Muhammad Salman
  • Rafele, Carlo
  • Zenezini, Giovanni

Abstract

The fast fashion sector is characterized by a short time-to-market which adds to the fluctuating demand faced by this industry where competition requires to introduce a number of new designs in clothing each season. In such a context, some firms have started creating independent companies in charge of managing logistics operations. This strategy allows a direct control over logistics activities enabling to save time and costs and increase quality. However, in order to obtain the promised benefits, independent logistics companies need to be sustainable from both an operational and an economic point of view. To this end, an appropriate performance management appears to be essential. The paper develops a structured performance measurement system for an independent logistics organization part of an Italian fast fashion company. After reviewing the existing logistics performance measurement models, the LOGISTIQUAL model was selected because it balances all the perspectives of the logistics service. The company processes were mapped to identify the activities to be monitored. KPIs were defined and classified according to each performance area of LOGISTIQUAL. Prior to its implementation, the performance measurement system was validated by applying the indicators to past data. This work provides fast fashion firms with a methodology to design and implement logistics performance measurement dashboards that can be used to understand the current organizational behavior. Such knowledge assists in defining effective strategies to ensure competitive advantage and long term sustainability. Also, monitoring performances stimulates people to operate in order to achieve the company's goals.

Suggested Citation

  • Cagliano, Anna Corinna & Mustafa, Muhammad Salman & Rafele, Carlo & Zenezini, Giovanni, 2014. "Logistics Performance Measurement for Sustainability in the Fast Fashion Industry," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Next Generation Supply Chains: Trends and Opportunities. Proceedings of the Hamburg International Conference of Logistics (HICL), Vol. 18, volume 18, pages 113-135, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    • Handle: RePEc:zbw:hiclch:209203
    DOI: 10.15480/882.1188
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    References listed on IDEAS

    as
    1. André de Waal & Karima Kourtit, 2013. "Performance measurement and management in practice," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 62(5), pages 446-473, July.
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    3. Yigitbasioglu, Ogan M. & Velcu, Oana, 2012. "A review of dashboards in performance management: Implications for design and research," International Journal of Accounting Information Systems, Elsevier, vol. 13(1), pages 41-59.
    4. Gunasekaran, A. & Patel, C. & McGaughey, Ronald E., 2004. "A framework for supply chain performance measurement," International Journal of Production Economics, Elsevier, vol. 87(3), pages 333-347, February.
    5. Sabrina Grimaldi & Carlo Rafele, 2007. "Current applications of a reference framework for the supply chain performance measurement," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 9(2), pages 206-225.
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    Cited by:

    1. Jooste, Corneli & van Eeden, Joubert & van Dyk, Esbeth, 2015. "South African Wine Supply Chain Performance Measurement Framework," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Innovations and Strategies for Logistics and Supply Chains: Technologies, Business Models and Risk Management. Proceedings of the Hamburg Internationa, volume 20, pages 305-332, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.

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