Lean supply chain performance measurement Kazi Arif-Uz-Zaman and A.M.M. Nazmul Ahsan Department of Industrial Engineering and Management, Khulna University of Engineering and Technology, Khulna, Bangladesh Abstract Purpose – The purpose of this paper is to present supply chain metrics and to propose a fuzzy-based performance evaluation method for lean supply chain. Design/methodology/approach – To understand the overall performance of cost competitive supply chain the paper investigates the alignment of market strategy and position of the supply chain. Since lean is applicable in many supply chains, the authors propose a set of metrics to evaluate supply chain performance. Moreover, the paper uses a fuzzy model to evaluate the performance of cost competitive supply chains. Fuzzy is an appropriate model method when uncertainty is present. It also allows modelling of a significant number of performance metrics across multiple supply chain elements and processes. Competitive strategy can be achieved by using a different weight calculation for different supply chain situations. Findings – Research provides optimal metrics for lean supply chains. The proposed method can measure the performance of lean supply chains using a fuzzy approach and competitive strategies. Research limitations/implications – The metrics which have been selected to measure the performance of lean supply chains is particularly applicable for high volume, low-price products. Practical implications – By identifying optimal performance metrics and applying performance evaluation methods, managers can predict the overall supply chain performance under lean strategy. By identifying performance for each metric they can also categorize the existing performance and optimise them accordingly. Originality/value – This study provides a performance evaluation method for supply chain managers to assess the effects of lean tools and competitive strategies. Keywords Lean supply chain, Supply chain metrics, Fuzzy-based evaluation method Paper type Research paper Introduction In the era of globalisation, supply chains are being treated as extended enterprises linking firms in different locations and enabling partners to gain competitive advantage. According to Jagdev and Browne (1998) supply chains are responsible for the entire lifetime of the product, from preparation of materials and supply management, to production and manufacturing, distribution and customer service, and ultimately recycling and disposal at the end of a product’s life. In recent years, firms have realised the potential of effective supply chain management (SCM) in the management of day-to-day operations. However, many firms fail to develop effective performance measures and the metrics needed to achieve integrated SCM. In order to achieve the supply chain goal of fulfiling customer orders more quickly and efficiently than competitors, a supply chain needs to engage in continuous improvement processes and competitive strategies. Hanson et al. (2011) argued that the alignment of an organisation’s activities with its strategies leads to competitive advantage. So, to understand how supply chains compete, it is necessary to understand the overall performance of the supply chain. Another important characteristic regarding supply chain measures is the strategic fit between competitive performance and supply chain strategy. Soni and Kodali (2011) found that the choice of competitive supply chain strategy impacted business and The current issue and full text archive of this journal is available at www.emeraldinsight.com/1741-0401.htm Received 14 May 2013 Revised 3 November 2013 10 January 2014 Accepted 16 January 2014 International Journal of Productivity and Performance Management Vol. 63 No. 5, 2014 pp. 588-612 r Emerald Group Publishing Limited 1741-0401 DOI 10.1108/IJPPM-05-2013-0092 588 IJPPM 63,5