Abstract :

This white paper proposes a performance management framework for third-party logistics aggregators (3PLs) that connect e-commerce companies and logistics providers. The logistics industry has grown rapidly in recent years, and with the emergence of aggregators, performance records must be updated. Using a case study of an Indonesian startup PT P, we create a framework using qualitative and quantitative interviews with the company’s C-levels. The framework is based on KPBMS, a simple and knowledge-based performance management system available in Indonesia. Traditional financial-based performance management systems have proven limited in their ability to adapt to modern organizational operating systems. A new-generation performance management system is based on the company’s strategy and values, is customer-centric, long-term, and emphasizes continuous improvement. The proposed framework includes strategic objectives, key performance indicators (KPIs), objectives, initiatives and reviews. KPIs are categorized into financial, customer, internal process, and learning and growth perspectives. Goal setting is based on broader goals, and initiatives are defined on the basis of rapid outcomes and long-term projects. The review process includes monthly, quarterly, and annual reviews focused on identifying areas for improvement. The proposed framework will help 3PL aggregators like PT P to set up a performance management system to monitor the performance of logistics providers and provide recommendations to e-commerce companies.

---

Keywords :

and KPBMS., E-Commerce, Logistics, Performance Management, third-party logistics

---

References :

1. https://www.techtarget.com/searcherp/definition/logistics. Access on April 18, 2023.
2. https://www.expertmarketresearch.com/reports/logistics-market. Accessed on April 19, 2023
3. https://www.oecd.org/coronavirus/policy-responses/e-commerce-in-the-time-of-covid-19-3a2b78e8/. Accessed on April 19, 2023.
4. Adebanjo, D., Kehoe, D., & Clegg, B. (2013). A review of the literature on performance measurement systems. African Journal of Economic and Management Studies, 4(3), 300-319.
5. Aquilano, N. J., Chase, R.B., Jacobs, F. R. (2004). Operations Management for Competitive Advantage. McGraw-Hill. Boston.
6. Armstrong, M. (2006). Performance Management: Key Strategies and Practical Guidelines (3rd ed.). Kogan Page Ltd. Philadelphia, 3rd edition.
7. Basu, R., and Wright, N. J. (1997). Total Manufacturing Solutions, Butterworth-Heinemann. Oxford.
8. Chen, C. J., & Huang, J. W. (2012). An investigation of the relationships among knowledge management, knowledge-based resources, and firm performance. Journal of Business Research, 65(12), 1560-1567.
9. Cooper, W. K., Kingshuk K. S., and Robert, S. S. (1992). Measuring complexity in high-technology manufacturing: indexes for evaluation. Interfaces.
10. Fatima, I., Wibisono, D., & Adhiutama, A. (2019). Conceptual Framework of Performance Management System for Construction Companies in Indonesia. International Journal of Innovative Technology And Exploring Engineering (IJITEE).
11. Hooley, G.J., and Saunders, J. (1993). Competitive Positioning: The key to market success, Prentice Hall International.
12. Ittner, C. D., & Larcker, D. F. (2003). Coming up short on nonfinancial performance measurement. Harvard Business Review, 81(11), 88-95.
13. Kaplan, R. S. (1983). Measuring Manufacturing Performance: A New Challenge for Managerial Accounting Research. The Accounting Review.
14. Kaplan, R. S., & Norton, D. P. (2001). The strategy-focused organization: How balanced scorecard companies thrive in the new business environment. Harvard Business Press.
15. Kaplan, R. S., & Norton, D. P. (2004). Strategy maps: Converting intangible assets into tangible outcomes. Harvard Business Press.
16. Kaplan, R. S. and Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action, Harvard Business School Press. Boston.
17. Lunger, K. (2006). Why You Need More Than a Dashboard to Manage Your Strategy. Business Intelligence Journal.
18. Morganti, E., Seidel, S., Blanquart, C., Dablanc, L., & Lenz, B. (2014). The Impact of E-commerce on Final Deliveries: Alternative Parcel Delivery Services in France and Germany, Transportation Research Procedia, 4, 178-190.
19. Neely, A., Adams, C., Crowe, P. (2002). The Performance Prism – The Scorecard for Measuring and Managing Business Success, Pearson Education Limited. London.
20. Stoop, P. P. M. (1996). Performance management in manufacturing: a method for short term performance evaluation and diagnosis. Unpublished PhD Thesis, Technische Universiteit Eindhoven.
21. Skinner, W. (2002). Missing the link in manufacturing strategy, in Voss, C. A. (1992). Manufacturing Strategy: Process and Content, Chapman & Hall. London.
22. Stoop, P. P. M. (1996). Performance management in manufacturing: a method for short term performance evaluation and diagnosis. Unpublished PhD Thesis, Technische Universiteit Eindhoven.
23. Wheelen, T., & Hunger, J. (2006). Strategic Management and Business Policy (10th ed.). Pearson Prentice Hall. New Jersey, 10th edition.
24. Wibisono, D. (2016). How to Create World Class Company: Panduan Bagi Direktur dan Manajer, Penerbit ITB. Bandung, 2nd edition.
25. Yu, J. (2017). The new generation of performance management system design for public sector organizations. Doctoral dissertation, Walden University.
26. Purwongemboro, M. S, Wibisono. D, Basri, M. H. (2022). Knowledge-Based Performance Management Framework for Small Public Health Facility: A Case Study of Clinic T in City B, Indonesia. International Journal of Current Science Research and Review, 05(08), 3068-3080.