An analytic approach to supply chain development

Supply chain management (SCM) has emerged as an increasingly important approach to improving the performance of logistics systems. SCM is an integrated approach to increase the effectiveness of the logistics chain by improving cooperation between the players in the chain. The objective of this paper is to demonstrate the potential of the analytic hierarchy process (AHP) in supply chain development. The PROPER approach developed by Hannus for business process re-engineering is used as the basic framework, and the potential of the AHP especially in supporting the analysis phase of the supply chain development process is shown with illustrative examples.