Implementation of a logistics balanced scorecard

Essay 2013 20 Pages

Business economics - Supply, Production, Logistics


Table of contents

Table of abbreviations

Table of figures

1 Abstract
1.1 Brief description of term paper intention
1.2 Purpose of the term paper

2 Supply Chain Performance Measurement concepts
2.1 SCOR model
2.2 Balanced scorecard

3 Company presentation

4 Diehl Controls Logistics Balanced Scorecard
4.1 Logistics scope
4.2 Mission and vision statement
4.3 Strategic objectives and KPIs

5 Recommendation

6 Summary and Conclusion


Table of abbreviations

illustration not visible in this excerpt

Table of figures

Figure 2-1: The five process types in the SCOR model

Figure 2-2: Balanced Scorecard framework

Figure 3-1: Diehl Group profile

Figure 4-1: Diehl Controls logistics scope

Figure 4-2: Logistics balanced scorecard – strategic objectives

Figure 4-3: Logistics balanced scorecard – KPI dashboard

Figure 5-1: Logistic KPIs in QPR database

1 Abstract

1.1 Brief description of term paper intention

In future industry competition will be increasingly “supply chain vs. supply chain”, rather than “firm vs. firm”.[1] So today, the efficient management of global supply chain networks already has the potential to create competitive advantages for companies. Nevertheless most industrial companies still focus on production efficiency, creating non-market oriented business solutions that disable fast adaption to changing customer requirements. In more and more saturated markets a technology-driven competitive advantage is often quickly compensated by low-cost countries. In contrast high service quality established by efficient logistics processes can hardly be adopted in short time.[2] The ability of fast consumer response allows companies to create an added value the customer is willing to pay for. But empowering companies to offer this added value requires high management attention on logistics processes as well as a clear logistics strategy with defined objectives that meet the company’s abilities and the customer requirements.

1.2 Purpose of the term paper

Several management tools like the Supply Chain Operations Reference (SCOR) model or the Balanced Scorecard provide a structured approach to realize competitive advantages in the management of supply chains. After a short theoretical survey of these tools, a suitable logistics balanced scorecard will be developed for the supply chain activities of Diehl Controls, an electronics manufacturer for home appliances. Based on the company’s logistics mission and vision statement, internal and external strategic objectives will be determined. In a further step, the controlling of these objectives will be ensured by creating suitable performance indicators. Finally the Diehl Controls logistics balanced scorecard will be introduced to the company’s organization. The term paper ends with a recommendation of future developments and enlargements of the balanced scorecard related to the company’s growth within the next years.

2 Supply Chain Performance Measurement concepts

In a first step two different approaches for supply chain performance measurement and management will be described shortly. As mentioned above the SCOR model and the balanced scorecard are currently widely used and approved in business economics. In a first step, the theoretical concept of the SCOR model will be shown.

2.1 SCOR model

The Supply Chain Operations Reference Model is an approach developed by the Supply Chain Councils, a non-profit organization, for all companies involved in supply chain activities. The Council was founded in 1996 by 69 members under the leadership of the consulting company Pittiglio Rabin Todd & McGrath (PRTM) and AMR Research.[3]

Main target of the SCOR model was the development of a common supply chain understanding in order to create a clear communication between involved companies along value chains. Furthermore the setup of a unique performance measurement system should be implemented as well as a basis for future developments of suitable supply chain management software. The model provides the following elements:[4]

- Terminologies
- Process descriptions, types and categories
- Performance indicators
- Best practices

Performance indicators are defined for each process type throughout the different hierarchical levels. Furthermore, each process category and element is described by best practice examples. On the top level the supply chain as a whole is characterized by aggregated performance attributes, which are based on the lower process levels. Main characteristics of the supply chain are height, depth, width and volume.[5] Nevertheless, the SCOR model only refers to logistic processes along the supply chain like Demand Management, Order Fulfillment, Manufacturing Flow Management, Supplier Relationship Management and Returns Managements. As shown in the figure below model these processes are divided into the five main process types Plan, Source, Make, Deliver and Return. Further business processes are not included in the model.[6]

Figure 2 - 1 : The five process types in the SCOR model

illustration not visible in this excerpt

Source: McCormack (SCOR planning practices, 2004).

As the SCOR model is in terms of logistics management a holistic tool, integrating suppliers and customers in the scope, it provides the opportunity of performance measurement along the whole value chain with standardized performance indicators.


[1] Hult (Supply Chain Orientation 2008), p. 538.

[2] Richert (Performance measurement in supply chains 2006), p. 44.

[3] Richert (Performance measurement in supply chains 2006), p. 43.

[4] Supply Chain Council (SCOR model 2003), p. 1.

[5] Supply Chain Council (SCOR model 2003), p. 6.

[6] Richert (Performance measurement in supply chains 2006), p. 44.


ISBN (eBook)
ISBN (Book)
File size
1.2 MB
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Institution / College
University of Applied Sciences Kempten – Professional School of Business and Technology Kempten
logistics balanced scorecard supply chain management process performance indicator KPI electronics strategy mission vision

Title: Implementation of a logistics balanced scorecard