Supply chain performance is considered as multidimensional
like all business performance, thus, different
dimensions covering both the efficiency and effectiveness
should be assessed (Mentzer and Konrad, 1991; Neely et al.,
1995). For efficiency, cost-related attributes should be
focused. For effectiveness, timeliness and reliability of the
service need to be addressed. Hence, cost, timeliness and
reliability of the supply chain must be understood and
assessed. Shepherd and Gu¨ nter (2006) reviewed the
taxonomy of supply chain performance measures from 16
previous related publications and noticed that supply chain
operations were composed of five dimensions which are cost,
time, quality, flexibility, and innovativeness. However, 90
percent proportion of the measures was based on the first
three dimensions of cost, time and reliability. Banomyong
(2007) indicated that supply chain performance needed to be
measured based on three main dimensions: cost, time and
reliability since these dimensions reflect the output of supply
chain operation as well as its capability to meet customer
requirements at the lowest cost, as quickly as possible and on
time. Thus, these three supply chain dimensions; cost, time,
and reliability will therefore be used as key performance
indicators (KPIs) to measure the performance of all internal
supply chain activities developed in this paper.