Good Criteria for Supply Chain Performance Measurement Regular Paper Elisa Kusrini 1,2,* , Subagyo 2 and Nur Aini Masruroh 3 1 Department of Mechanical and Industrial Engineering, Faculty of Engineering, Gadjah Mada University, Yogjakarta, Indonesia 2 Department of Industrial Engineering, Faculty of Engineering, Indonesian Islamic University, Yogjakarta, Indonesia * Corresponding author E-mail: elisa_kusrini@yahoo.com Received 02 Dec 2013; Accepted 04 Mar 2014 DOI: 10.5772/58435 © 2014 The Author(s). Licensee InTech. This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Abstract This paper discusses good criteria for a supply chain performance measurement model and their level of importance. The criteria were obtained from results of previous research findings and recommendations from several researchers. The criteria are divided into two categories, namely efficient and effective. To examine which criteria can be used to assess a supply chain performance measurement model, a survey was conducted by distributing questionnaires to supply chain actors from different industry fields (both manufacturing and services) in Indonesia using random sampling techniques. Data analysis using pairwise comparisons with an analytical Hierarchy Process model showed that efficient criteria were more important than effective criteria. Efficient criteria consisted of three sub-criteria: the amount of data is not too much and low cost and output is presented in a simple form. Effective criteria consisted of the criteria in the order of importance as follows: clarity, validity, comprehensiveness, responsiveness and dynamics. Further research is needed for developing a model that meets these criteria Keywords Performance, Measurement, Supply Chain Management, Good Criteria, Pairwise Comparison 1. Introduction Performance measurement plays an important role in the improvement of an organization. Performance measures can determine the level of progress of the organization and determine the necessary action needed for improving the organization. From a management perspective, performance measurement has the role of providing feedback information, which is very useful for managers to monitor the progress of the company's performance as an initial step in the development of the company, to increase motivation and communication and to diagnose problems [20,21]. Performance measurement can be used to assess the effectiveness of strategies in Supply Chain Management (SCM) and to identify success and opportunities for the future. It shares an important contribution in the decision making process in SCM, especially for the process of re-planning the company’s objectives and strategies, as well as in the re-engineering process [3]. There are various approaches in SCM performance measurement and these can be grouped into three categories, i.e., based on context (supply chain conditions), content (what is measured) and process (how Elisa Kusrini, Subagyo and Nur Aini Masruroh: Good Criteria for Supply Chain Performance Measurement 1 ARTICLE Int J Eng Bus Manag, 2014, 6:2 | doi: 10.5772/58435 International Journal of Engineering Business Management