Citation: Varadejsatitwong, P.; Banomyong, R.; Julagasigorn, P. A Proposed Performance-Measurement System for Enabling Supply-Chain Strategies. Sustainability 2022, 14, 11797. https://doi.org/10.3390/ su141911797 Academic Editors: Chia-Hsun Chang, Christos Kontovas, Chi-Chang Lin and Poti Chaopaisarn Received: 13 July 2022 Accepted: 16 September 2022 Published: 20 September 2022 Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affil- iations. Copyright: © 2022 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https:// creativecommons.org/licenses/by/ 4.0/). sustainability Article A Proposed Performance-Measurement System for Enabling Supply-Chain Strategies Paitoon Varadejsatitwong *, Ruth Banomyong and Puthipong Julagasigorn Thammasat Business School, Thammasat University, Bangkok 10200, Thailand * Correspondence: paitoon-var58@tbs.tu.ac.th Abstract: Existing performance-measurement systems in the supply-chain literature have been designed for specific supply chains. Without a business-appropriate performance-measurement system, practitioners devise strategies that are neither scientific nor supported by data. The objective of this paper was to propose a performance-measurement system to support the enabling of supply- chain strategies. The proposed performance-measurement system (PMS), combining the Plan–Do– Check–Act cycle (PDCA) with the evidence-based management (EBM) concept, served as the basis for developing a procedural framework. The PMS was validated using the case logistics service providers (LSPs). The PDCA methodology was used to develop a structural framework for fourth-party logistics (4PL). In the Plan step, the research team identified the business problems of fourth-party logistics (4PL). In the Do step, the LSP literature was reviewed, to identify five performance dimensions (‘Service Quality’; ‘Social and Environmental’; ‘Inter-organizational Relationship’; ‘Financial’; and ‘Efficiency and Effectiveness’), and key performance indicators (KPIs). The 4PL management team participated in the finalization of the five performance dimensions and the 53 KPIs, which were used to propose a preliminary version of the structural framework for the 4PL. In the Check step, the data collected from 478 subcontractors of the 4PL were analyzed, using confirmatory factor analysis and structural equation modeling, and were used to validate the proposed structural framework for the 4PL. The validated structural framework was further presented at an academic conference, and to the 4PL for feedback, and was used to formulate supply-chain strategies through brainstorming. The findings include a validated structural framework containing five performance dimensions and 32 KPIs. The research revealed that input performance (‘Service Quality’, ‘Social and Environmental’, and ‘Inter-organizational Relationship’) positively affected output performance (‘Financial’ and ‘Efficiency and Effectiveness’). Supply-chain strategies were further suggested to the 4PL. The validating case in this study demonstrated that the employed procedural framework (PDCA and EBM) was applicable, and could be used to derive a structural framework and supply-chain strategies for the 4PL. This study contributes to the literature, by proposing a PMS for supply-chain strategy development. The paper’s illustrative case provides a practical application of how to develop a performance-measurement system. Keywords: performance-measurement system; the PDCA cycle; evidence-based management; logistics service providers 1. Introduction Modern-day competition is no longer between companies but between supply chains [1]. Supply-chain management, therefore, requires the development of supply-chain strate- gies. The development of supply-chain strategies requires that all parties within the supply chains understand their respective baseline performances (‘As-Is’), and have a clear understanding with regards to their future directions (‘To-Be’) [2]. In the literature, many performance-measurement systems can lead to strategy development, but these are designed for specific supply chains [3,4], and raise a practical problem when applied Sustainability 2022, 14, 11797. https://doi.org/10.3390/su141911797 https://www.mdpi.com/journal/sustainability