Figure Implementation process of a performance measurement system. The financial perspective evaluates the book value of the company that is calculated by past-oriented financial indicators. The evaluation compares the functionality of the described systems with the particular requirements of a supply chain-related performance measurement instrument.
The intent of the scorecard is to provide a formalized mechanism for influencing managers to achieve a balance between nonfinancial and financial results across short-term and long-term time horizons Brewer,p.
Each perspective provides a selection of performance indicators to measure the financial and intellectual capital of the company. The following figure shows the structure of the Performance Pyramid at a glance. Figure Correlation of deliverability and production turnover.
A quite similar approach is described by GIESE where the main requirements towards a performance measurement system for supply chains are Giese,p.Research area Industrial Production. Figure Evaluation results of customer-related performance indicators. Within the different perspectives individual targets and performance indicators need to be formulated by the company using the scorecard for the evaluation of business performance. The evaluation compares the functionality of the described systems with the particular requirements of a supply chain-related performance measurement instrument. The following figure shows the structure of the Performance Pyramid at a glance. The last element represented by the continuous improvement focuses on the optimization of the strategy, the targets and the process performance indicators and supports the company to reach the Quantum Performance Schomann, , p. A strategic implementation of SCM in business environments can be realized with different management concepts, such as efficient consumer response ECR or collaborative planning, forecasting and replenishment CPFR. A quite similar approach is described by GIESE where the main requirements towards a performance measurement system for supply chains are Giese, , p. The combination of financial and non-financial performance indicators offers a more holistic view of the business environment and supply chain processes. Furthermore the performance measurement tool can be divided into an external scope, representing the customer interests like deliverability, quality or customer satisfaction, and an internal scope, representing the interests of the shareholders like financial performance, productivity or lead time. As a result, it has become difficult to measure their true performance and contribution of value to the network. Figure Correlation of deliverability and inventory days. This is able to provide value chain based information to the management in order to optimize supply chain-wide processes the customer is willing to pay for. Within the performance measurement system this can be realized by sophisticated performance indicators that reflect the strategic goals of the company. Figure Structure of the Skandia Navigator.
Figure Evaluation results of customer-related performance indicators. After purchasing the required raw materials from the supplier the order fulfillment is ongoing until the final product gets delivered to the customer. The continuous improvement of identified potentials as well as the reduction of complexity allows the design of a more flexible and cost-efficient supply chain network.
Again, this result clearly shows a discrepancy of real business performance and evaluated indicators. Within the process perspective the value of integrated information systems and technologies is considered.
Furthermore each department needs to consider interdependencies with other departments when defining their individual Tableau de Bord in order to avoid inefficiencies. Furthermore the analysis confirms that significant improvements in non-financial indicators are necessary for a moderate improvement in financial indicators.