Using the balanced scorecard approach as detailed in Chapter 14 (Figure 14.1), identify 4 key metrics that you would propose for your organization’s supply management system and how you propose to measure those 4 key metrics in your supply chain. Be sure to respond to at least two of your classmates’ postings
The Balanced Scorecard is a form of management system tool designed for organizations to manage their strategy performance (Hong, Zhong-Hua, 2013). It is essential for organizations for ease in monitoring their operations and also helps in evaluating and improving their internal and external functions. Therefore an organization effective supply chain considers the overall operations and the metrics to be used.
Supply chain is the addition of the value of goods and services that is supply and distribution of goods, services from the manufacturer to the consumer.
Supply chain management therefore is the process of examining and managing the supply chain networks so to deliver full satisfaction of the consumer satisfaction.
The center of a balanced score card application to an effective supply chain considers the following metrics;
The supply chain balanced scorecard to business supply chains starts from corporate strategic objectives. Corporate objectives are performance and corporate strategic linked. A balanced Scorecard on the chain supply performance integrates the consumer, supplier satisfactions and economic benefits to the organization, profitability.
Internal and external business process
Internal business processes are the measures that evaluate the value of the product and services on the impact to the customer satisfaction so as to achieve the financial objectives, profitability.
External business process measures the evaluation of the supplier so as to form business alliances, evade competition to cooperation by building good supplier relationships.
The supply chain balanced scorecard more so concerns itself with evaluation on the performance of the supply chain in the markets segments and the customers need, so as to develop the good or service that will effectively achieve the financial goals and provide customers satisfaction.
Innovation and learning
A balanced scorecard goal is to close the gap that hinders unproductiveness by investing on employees’ acquisition of new skills and making the organization corporate objectives the day to day work of the employees.
Hong, Y., & Zhong-Hua, Y. (2013). Supply chain dynamic performance measurement based on BSC and SVM. Intl. Jrnl. of Computer Science Issues, 10(1), 271-277.
Thank you for identifying the key metrics that you propose for your organization’s supply management system. Tell me, how the balanced scorecard approach is different from any other performance measure? Choose any one you like.