Performance measurement of supply chain management: A balanced scorecard approach

Abstract

This paper develops a balanced scorecard for supply chain management (SCM) that measures and evaluates day-to-day business operations from following four perspectives: finance, customer, internal business process, and learning and growth. Balanced scorecard has been developed based on extensive review of literature on SCM performance measures, supported by three case studies, each illustrating ways in which BSC was developed and applied in small and medium sized enterprises (SMEs) in India. The paper further suggests that a balanced SCM scorecard can be the foundation for a strategic SCM system provided that certain development guidelines are properly followed, appropriate metrics are evaluated, and key implementation obstacles are overcome. The balanced scorecard developed in this paper provides a useful guidance for the practical managers in evaluation and measuring of SCM in a balanced way and proposes a balanced performance measurement system to map and analyze supply chains. While suggesting balanced scorecard, different SCM performance metrics have been reviewed and distributed into four perspectives. This helps managers to evaluate SCM performance in a much-balanced way from all angles of business.