T4

2. Why might performance measurement be more difficult in global logistics

systems?

There are several challenges that may exist when developing a performance
measurement system in a global setting. Some examples of the challenges of
applying performance measures to global logistics activities include:

1) When determining which measures to use, managers may need to tailor the
measures to the specific global setting. For example, there may need to be
adjustments between developed and emerging markets.

2) When collecting and analysing data, managers must be aware of issues such
as currency differences that exist in global settings.

3) Varying national cultures can result in a diverse set of behavioural issues

across a global logistics system.

4) Time zone differences that exist in a global logistics system can make
frequent communication and constant updating of the measures a greater
challenge.