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Supply Chain Balanced Scorecard Essay

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.....business world is filled with a multitude of work environments that demand quick and effective responses. That is why one of the key ingredients for any successful business is the ability to gain competitive advantage via leveraging of performance-based measurement. To maintain high productivity levels and employees, make customers happy, and increase profits, a company must recognize and understand its weaknesses so it can improve general performance. Assessing performance gaps and planning initiatives to address any identified performance problems should be priority for organizational effectiveness to remain consistent. To do this, a company can adopt a basic four-stage performance measurement process, offering the obligatory competitive advantage and avoiding too much energy diverted from regular company processes. This four-stage process is called the Supply Chain Balanced Scorecard.The Supply Chain Balanced Scorecard provides a company with the ability to track a limited number of key metrics. These cover four main areas. They are:

1. Financial: This could signify warehousing, transportation, supplier inventory, manufacturing and so forth.

2. Customer: Meaning, backorder levels, missed deliveries, order fill rate, and ontime deliveries.

3. Internal Business: Usually it concerns, forecast error, employee retention, and adherence to plans.

4. Training: The last phase checks for certification, in-house...

The main idea is to emphasize key metrics that are attached to real meaning within the company. This approach aids in helping keep measures aligned with firm objectives. Tracking such measures monthly, with specified targets per assessment will allow for a smooth and consistently beneficial process.
One book noted the use of the modified Balance Scorecard stating real world use of the Supply Chain Balanced Scorecard. "The Supply Chain Balanced Scorecard Chemicals consists of four inter-enterprise performance measures: 'complaint number', 'complaint quota', 'inventory' and 'sales days' coverage'" (Seuring & Goldbach, 2013, p. 410). Serring & Goldbach offered examples of actions started to minimize inventory of specific product groups. "For 'sales days' coverage' the companies' sales day's coverage figures are added up. For 'inventory' and 'sales days coverage' the enterprises' data are displayed in addition to the inter-enterprise data for further analysis" (Seuring & Goldbach, 2013, p. 410). Because the supplier controls some aspects of inventory such as delivery and…

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