Balanced Scorecard approach in deducing supply chain performance

Abstract

Supply chain management showcases a major role in enhancing organizational efficiency and effectiveness. A proficient supply chain can lead to abridged costs, augmented market shares, improved transactions and sustainable customer relationships. Nevertheless, designing a supply chain alone may be inadequate in bettering the overall performance of an organization which can only be improved through evaluation. For deducing supply chain performance, the Balanced Scorecard (BSC) is an appropriate tool, apart from Supply Chain Operations Reference models (SCOR), Analytic Hierarchy Process (AHP), Data Envelopment Analysis (DEA) and Heuristic techniques based models. Modern firms face inabilities in measuring their real performance against the demanded performance. Real performance is often greater or lesser than the demanded performance which leads to uncertain and delicate supply chains. Accounting for this ambiguity and improving supply chain performance using Balanced Scorecard model is the emphasis of this research effort, by providing an approach to inspect value creation from four standpoints such as financial, customer, internal business process, learning and growth. In this paper, the drag factors which affects the above four standpoints have been explored and removed, to mend the supply chain for better profits.