In future industry competition will be increasingly “supply chain vs. supply chain”, rather than “firm vs. firm”. 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. 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.
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.
Table of Contents
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
Objectives and Topics of the Paper
This paper aims to develop a tailored Logistics Balanced Scorecard for the internal logistics department of Diehl Controls to bridge the gap between operational tasks and strategic requirements. By integrating the theoretical frameworks of the SCOR model and the Balanced Scorecard, the paper establishes a system of key performance indicators to monitor logistics performance, enhance transparency, and align the department with the company's long-term business goals.
- Application of the SCOR model and Balanced Scorecard in a logistics context.
- Development of a logistics-specific mission and vision statement.
- Definition of strategic objectives across four dimensions: Finance, Customers, Internal processes, and Learning/Growth.
- Implementation of performance measurement through a structured KPI dashboard.
Excerpt from the Book
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”. 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. 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.
Summary of Chapters
1 Abstract: Provides an overview of the increasing importance of supply chain competition and outlines the purpose of creating a Logistics Balanced Scorecard for Diehl Controls.
2 Supply Chain Performance Measurement concepts: Discusses the theoretical foundations of the SCOR model and the Balanced Scorecard as tools for enhancing supply chain performance.
3 Company presentation: Profiles the Diehl Corporation and its division Diehl Controls, highlighting current organizational structures and the need for a strategic logistics orientation.
4 Diehl Controls Logistics Balanced Scorecard: Details the development of the scorecard, including scope definition, mission and vision statements, and the selection of strategic objectives and KPIs.
5 Recommendation: Proposes the integration of logistics KPIs into the existing internal QPR database and suggests future expansions of the scorecard scope.
6 Summary and Conclusion: Evaluates the overall potential of the Logistics Balanced Scorecard to improve management focus and support supply chain orientation.
Keywords
Logistics, Balanced Scorecard, SCOR model, Supply Chain Management, Performance Measurement, Diehl Controls, KPI, Strategic Objectives, Value Chain, Process Efficiency, Sustainability, Customer Satisfaction, Inventory Management, Reporting, Implementation.
Frequently Asked Questions
What is the primary focus of this paper?
The paper focuses on the development and implementation of a Logistics Balanced Scorecard specifically for the internal logistics department of Diehl Controls to shift from an operational to a strategic management approach.
Which theoretical models serve as the foundation for this work?
The research relies on the Supply Chain Operations Reference (SCOR) model for process categorization and the Balanced Scorecard framework for translating strategy into measurable performance indicators.
What is the main objective of the proposed scorecard?
The primary objective is to align logistics activities with the company's business strategy, ensuring that quality, cost, and sustainability goals are met through continuous monitoring.
How is the logistics department's strategy defined?
The strategy is defined through a specifically developed mission statement focusing on efficient customer demand fulfillment and a vision statement targeting the creation of a competitive advantage through an efficient and sustainable supply chain.
Which four dimensions are utilized in the scorecard?
The scorecard follows the traditional four perspectives: Finance, Customers, Internal processes, and Learning/Growth.
What key performance indicators are suggested?
Suggested KPIs include metrics like delivery performance rate, throughput time, special freight costs, inventory turnover rate, and realized improvement ideas per employee.
How does the paper propose to handle data and reporting?
It recommends integrating the defined local logistics KPIs into the existing internal QPR database to ensure visibility and easier monthly performance evaluation for management.
What are the identified challenges for the logistics department at Diehl Controls?
The department currently lacks a defined strategic logistics mission and vision, and is overly focused on production efficiency, which limits its ability to respond to changing market requirements.
- Citar trabajo
- Dipl.-Wirtsch.-Ing. Christian Biewald (Autor), 2013, Implementation of a logistics balanced scorecard, Múnich, GRIN Verlag, https://www.grin.com/document/208403
