Supply chain management and the balanced scorecard

Extending the balanced scorecard into the context of the supply chain. Brewer and Speh (2000) consider that performance measurement systems must be aligned to supply chain practices  

If firms talk about the importance of supply chain concepts, but continue to evaluate employees using performance measures that are. .. unaffected by supply chain improvements, then they will fail in their supply chain endeavours. 

Traditional performance measurements within a focal firm have a number of significant deficiencies. They often track individual activities within functions this can promote the optimisation of the function rather than of the supply network as a whole. 

As a general rule, effective cross-supply chain measures should have the following characteristics (Derocher and Kilpatrick, 2000)  

Here are eight such measures, which can be adapted to focus on specific sectors  

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