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The performance measurement scales on logistics and supply chain management can be used not only for benchmarking but also for the strategic formulation. The measurement scales in different scorecards were summarized in four areas, i.e., Logistics Performance (LP), Planning/Execution Capabilities (PE), IT Methods and Implementation (IT), and Corporate Strategy and Inter-Organizational Alignment (SO). Six hypotheses on the relationships among these four areas were proposed. A survey with 177 samples was conducted in Chinese manufacturing and logistics industries to test the hypotheses. A proposed framework suggests that planning/execution capabilities in the strategic formulation should be separated from logistics performance and the operations on the corporate strategy and inter-organization alignment on supply chain should move earlier than the IT methods and implementation.

A Strategic Formulation Model Based on Performance Measurement Scales of SCM