PERFORMANCE MANAGEMENT SYSTEM IN SALE AND DISTRIBUTION: A CASE OF SERBIAN COMPANY

Background: Performance management system (PMS) is the process of quantifying action which leads to organizational efficiency, competitiveness and growth. Performance measurement is the vital element of quality management system (QMS). Innovative companies have a strong culture, clear sense of mission and purpose, a well thought out strategy and business philosophy of continuous improvement, driven by QMS. Implementation of QMS ISO9001 standards has encouraged many organizations to develop and implement performance management system. Statement of quality objectives and Measurement, analysis and improvement as a part of QMS which leads to continual improvement is a vital part of success of company. Therefore PMS influence on sale, distribution and logistics companies with a complex processes and great number of subjects in supply chain are of great importance for their success.

Methods: In our research we analyse measures and measurement approaches and frameworks that exist in logistic management and based on that we present results from one SME from eastern European country. We use case study research and therefore we conduct interviews with managers, employees and QMS/PMS implementation staff in sale and distribution company.

Results: The aim of this study was to estimate the value of various metrics of the evaluation of QMS implementation. The study was based on case study in one Serbian sale and distribution company specifically in measurement part and metrics that are essential for their business and to compare them with approaches existed in literature. We reveal some obstacles in collecting data for measurement and benchmarking in Serbian market. Different metrics for efficient management of company are implemented in this company based on sales results and customer satisfaction.

 Conclusion:  The importance of the research is in the fact that implementation of QMS reveal the need for PMS implementation and therefore results in certain performance measures implementation and further continuous tracking of these parameters. We made conclusion that higher business results were reached after PMS implementation and that after implementation of QMS and PMS top managers understand the importance of implementation. We reveal also the fact that in former eastern European socialism countries like Serbia, exist resistance of performance measurement implementation and publication of these data as well as the implementation of benchmarking among companies.