Abstract:
Ascertaining and prioritizing the various factors that can influence the performance of a supply chain system is vital
towards creating measures that are tailored towards controlling these factors, in order to ensure a sustainable supply chain.
This research subject matter has been solved in the literature using multi-criteria decision making techniques, whose
prioritization solutions are generated using experts opinions, which are subjective, thereby decision obtained could be
prone to biases. In light of this, this study present an Hierarchical Structural Interaction Matrix (HSIM) approach, whose
prioritization computation is premised on the theory of subordination derived via systems thinking, to prioritize various
factors influencing the performance of a supply chain system. In order to achieve this, firstly, all the factors that could
influence the performance of a supply chain system were identified from the literature. Thereafter, a Binary Interaction
Matrix, which unveil the arrays of subordinations that exist amidst a number of the identified factors was developed. The
result of this exercise was thereafter numerically analyzed using appropriate mathematical equations to determine the
intensity rating score of each supply chain performance factor. Furthermore, Pareto analysis was conducted using the
latter results, to unveil the vital few factors that could influence the performance of a supply chain system used in an
organization. The result of the study unveiled that supply chain performance of an organization can be exponentially
improved, if supply chain managers can focus and concentrate their management efforts more on 11 critical factors
obtained from the prioritization analyses. With this approach, supply chain manager would obviously reduce errors in the
ratings of the supply chain performance-driven factors.
