A framework for designing the balanced supply chain scorecard

Abstract

Effective measurements of Supply Chain Management (SCM) in the context of the Balanced Scorecard (BSC) have become more important. In the existing SCM performance studies, there are three limitations. First, the SCM measures are not reconciled with the BSC. Second, SCM measures have not comprehensively considered the goals that can be achieved by SCM strategies and solutions. Third, the measures have not identified the characteristics of industry, product, and production strategy. In this paper, we propose a framework for the Balanced Supply Chain Scorecard that considers the literature on the BSC and SCM, SCM solutions, and product characteristics. We analyze the causal relationships between the SCM solutions and product characteristics against measures. The identified relationship between the measures and SCM solutions can be used to evaluate the impact of SCM solutions. Using a case study, we find that the importance of measures significantly depends on the product characteristics. This study can be used to expand the BSC into the area of Strategic Enterprise Management systems, thus to relate performance measures to business activities. © 2005 Operational Research Society Ltd. All rights reserved.