Balanced Scorecard & KPIs

Balanced Scorecard & KPIs

Amid the profusion of theories and literature regarding Key Performance Indicators (KPIs), Enchange has developed a practical, versatile tool which is being currently used by many of our clients’ senior management for decision making and performance measurement purposes.

On completion of a Walk Through, core areas within the supply chain are identified and a set of KPIs is put in place in order to assess performance in these areas.

A ‘traffic light’ coding system is used to indicate various performance levels ( i.e. yellow = performance target achieved; amber = below target corrective action is required, red = serious under-performance urgent action is required).

Examples Of Supply Chain KPI Indicators

  • customer service levels
  • demand coverage
  • distribution performance
  • inventory management
  • planning and forecasting accuracy
  • supplier performance

Crucially, individuals own responsibility for measuring their part of the supply chain. The tool includes extensive definitions and formulas together with a comprehensive User’s Guide.

At Enchange we use the Balanced Scorecard format (originated by Kaplan and Norton 1992-2016) to present KPIs. The Balanced Scorecard is designed to support the key elements of the Strategy Map.

An Example Of KPI Development

Step 1 – Select KPIs

SUpply Chain KPI Development Step 1

Step 2 – Agree target performance level

Supply Chain KPIs development Step 2

Step 3 – Performance management focuses on below target performance

Supply Chain KPIs Development Step 3


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