Performance measurement systems (PMS) have commonly been applied to evaluate and reward performances atmanagerial levels, especially in the context of supply chain management. However, evidence suggests that the effectiveuse of PMS can also positively influence the behaviour and improve performance at an operational level. The motivationis to accomplish organisational goals, namely to increase supply chain flexibility by responding to evermore-varying customerdemands in a timely manner. The purpose of the study described in this paper was to develop a conceptual frameworkthat adopts performance measures for ex-ante decision-making at an operational level within the supply chain. Toguide the research, five questions were asked and subsequently key gaps have been identified. In an attempt to fill thegaps, a case study at a major global brand beverage company has been carried out, and as a result, a conceptual frameworkof the PMS has been developed. Overall, the research offers a foundation of the applicability and impact of PMSin the supply chain and provides a framework that attends to some of the potential uses of PMS that so far have notbeen practically applied. The outcomes from the testing indicate that the initial gaps identified in the literature have beenaddressed and that the framework is judicious with scope for practical applicability. The framework is deemed worthy offurther testing in different operational contexts of the supply chain.
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