OEMs Logistics and its Environments Scorecard Development for Assessing Present and Future Performance
Under current situation that dominated with continuous change and increasing competition, contracting Original Equipment Manufacturer (OEM) becomes considerable choice for many business. Contracting OEM can potentially reduce cost, increase quality, and enhance business flexibility. However, these benefits can be achieved only by properly manage the contract with the OEM. One way to do this is by implementing performance measurement system that can drive the organization to reach mission, strategy and objectives. Traditionally, performance measurement focused on financial and process parameters. This assumption is no longer suitable with present trend that more concern about environment and social impact. Therefore, this research objective is developing a new scorecard that include both financial and environmental impact for assessing OEM performance. The development process using Structural Equation Modelling method for validate evaluation criteria that should be used for evaluate OEM performance. Then followed with assigning importance weight of each criteria with Analytical Network Process. Capability, cost, customer, delivery, environment, organization, and quality were validated as critical evaluation criteria. Besides developing new scorecard, this research also suggest the implementation of forecasting method for projecting the future performance of OEM.
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