Valuing Supply Chain Performance Within and Across Manufacturing Industries: A DEA-based Approach

Flensburg, 18/06/2021: Marcus Brandenburg and his colleagues Gerd J. Hahn and Jochen Becker from German Graduate School of Management and Law in Heilbronn have published a paper entitled “Valuing Supply Chain Performance Within and Across Manufacturing Industries: A DEA-based Approach” in the peer-reviewed journal “International Journal of Production Economics”. The study assesses firm value and related levers of operational supply chain performance in 13 US manufacturing industries from a financial market perspective. It shows that earns and turns are negatively correlated from an internal accounting-based viewpoint and that manufacturing companies are less efficient in translating earns as opposed to turns into firm value. The study reveals that the efficacy of approaches to value-based supply chain management chosen in various manufacturing industries declines since 2007. Practical implications include recommendations for managers of publicly listed manufacturing companies to carefully review their business priorities and evaluate when and how operational SC performance improvements can help best meeting stock market expectations.

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