The study sought to determine the Balanced Scorecard measures on supply chain performance at Kenya Nut Company. The objectives of the study were to establish the extent to which the BSC measures have been used at KNC and the challenges faced in implementing the BSC.
The research design involved a case study of employees at KNC. Data was collected using a questionnaire that was administered through a drop and pick method. Tables, graphs and regression analysis were used to present the findings.
The study established that the BSC measures are greatly used to establish the supply chain performance at KNC. Some of the measures that are extensively used include percentage of sales margin, profit margin, range of products offered, accuracy of forecasted demand, level of partnerships with suppliers among others. It was also established that some critical measures have not been intergrated into the organization. These measures can greatly improve the performance of KNC and overcome its challenges of slow production growth, lack of customer awareness, poor information systems and high processing costs. This measures include return on supply chain assets, cost per operation hour, order lead time, product development life cycle.
The study also established some of the challenges faced in implementing the BSC such as too much time in developing and updating the BSC, too many measures being used and difficulty in determining the measures. It was also clear that there was a very significant relationship between BSC measures and supply chain performance represented by R2 value of 0.73 which translates to 73% variance explained by the four independent variables of financial measures, customer satisfaction, internal business processes, learning and growth.
Further research can be done on the same study but to a wider group of companies to establish whether the BSC measures are used. It has also been recommended that other organizations embrace the BSC measures to embrace the benefits such as product leadership, improved flexibility, and increased information capital among others. The challenges affecting KNC in implementing the BSC should be monitored so that KNC can fully adopt the BSC in its supply chain.
Table of Contents
1.1 Background of the Study
1.1.1 Balanced Scorecard
1.1.2 Supply Chain Performance
1.1.3 Kenya Nut Company
1.2 Statement of the Problem
1.3 Objectives
1.4 Value Of The Study
2.1 Introduction
2.2 Balanced Scorecard
2.3 The Balance Scorecard Measures
2.3.1 Customer Perspective
2.3.2 Financial perspective
2.3.3 Learning and growth
2.3.4 Internal business processes
2.4 Supply Chain Performance Measurement
2.5 Challenges In The Implementation of The Balanced Scorecard
2.6 Conceptual Framework
3.1 Introduction
3.2 Research Design
3.3 Population Of Study
3.4 Data Collection
3.5 Data Analysis
4.1 Introduction
4.2 Response Rate
4.3 Demographic Data
4.4 Extent of the BSC measures in Supply Chain Perfomance at KNC
4.5: Relationship between the Balanced Scorecard measures and Supply chain performance
5.1 Introduction
5.2 Summary of Findings
5.3 Conclusions
5.4 Recommendations
5.5 Limitations of the Study
5.6 Suggestions for Further Research
PART A: GENERAL INFORMATION
PART B: THE EXTENT OF THE BSC ON SUPPLY CHAIN PERFOMANCE (Please tick where appropriate)
PART C: CHALLENGES IN THE IMPLEMENTATION OF THE BSC (Please tick where appropriate)
Research Objectives and Focus
The primary research objective is to examine the extent to which Balanced Scorecard (BSC) measures are utilized within the supply chain performance management at Kenya Nut Company (KNC), while identifying the specific challenges faced during the implementation process.
- Extent of BSC adoption across four key performance perspectives
- Statistical relationship between BSC implementation and supply chain efficiency
- Identification of operational challenges in deploying the scorecard
- Comparative analysis of current performance measurement tools
Auszug aus dem Buch
1.1 Background of the Study
As businesses evolve into the 21st century, the management focus driving most organizations is supply chain superiority (Brewer & Speh, 2000). Supply chain management is becoming a necessity in the competitive marketplace hence the need to have performance measurement tools that can lead to successful supply chains. The balance scorecard (BSC) proposed by Kaplan & Norton (1996) is a performance evaluation tool that includes non-financial perspectives such as customer ,internal business process, and learning and growth perspectives, as well as the financial perspective to give managers a balanced view of overall organizational performance. It strikes a balance between financial and non-financial measures thereby enabling organizations to achieve holistic supply chain excellence. The BSC was developed as an enhancement to the previously traditional methods of measuring performance such as return on investment (ROI), payback period and net present value (NPV). The traditional methods majored on financial aspects of a firm ignoring other performance indicators. They followed financial accounting principles without any forward-looking perspective and measurement was restricted directly to measurable indicators only (Horvath, 1996). This was unrealistic in modern supply chain management applications, where a performance measurement system has to take into account a wider range of controlling targets such as customers requiring a range of benefits that are both tangible and intangible (Bhagwat & Sharma, 2007).
Performance measurement is the process of quantifying effectiveness and efficiency of organisational functions (Neely, Gregory & Platts, 1995). Neely (1996) also explained that performance measurement refers to the use of a multi-dimensional set of performance measures that includes both financial and non-financial measures that quantify what has been achieved as well as measures that help predict the future. Therefore, supply chain performance measurement is the process of determining the productivity of the whole supply chain from suppliers to consumers involving functions such as inventory management, transportation, customer service, storage, delivery and order fulfillment. In today’s world, supply chain excellence is more than just reduced costs. It also includes better customer service, reduced lead times, advancement in technology hence the need of performance measurement systems that can capture all the required data (Brewer & Speh, 2000).
Summary of Chapters
CHAPTER ONE INTRODUCTION: Provides the research background regarding supply chain superiority and the role of the Balanced Scorecard in performance measurement, establishing the problem statement at Kenya Nut Company.
CHAPTER TWO LITERATURE REVIEW: Examines existing academic discourse on the four BSC perspectives and their application in various sectors, concluding with the conceptual framework.
CHAPTER THREE RESEARCH METHODOLOGY: Details the case study approach, data collection via structured questionnaires among KNC staff, and the quantitative analysis techniques employed.
CHAPTER FOUR DATA PRESENTATION AND ANALYSIS: Presents the primary findings from the survey, including demographic profiles and the regression analysis linking BSC measures to supply chain performance.
CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATIONS: Summarizes the key research findings and offers actionable recommendations for KNC to improve its supply chain via optimized BSC integration.
Keywords
Balanced Scorecard, Supply Chain Performance, Kenya Nut Company, Performance Measurement, Financial Perspective, Customer Perspective, Internal Business Processes, Learning and Growth, Regression Analysis, Macadamia Nut Industry, Strategic Management, Supply Chain Efficiency, Organizational Performance, Operational Challenges.
Frequently Asked Questions
What is the core focus of this research project?
The study focuses on evaluating how the Balanced Scorecard (BSC) framework is implemented at the Kenya Nut Company to measure and improve supply chain performance.
What are the primary thematic areas covered in the work?
The research covers four key BSC perspectives: financial capability, customer satisfaction, internal business processes, and organizational learning and growth.
What is the main objective of the study?
The primary goal is to determine the extent of BSC usage at KNC and to analyze the specific hurdles the company faces when implementing these performance metrics.
Which methodology was chosen for this research?
The research employed a case study design, utilizing primary data collected through structured questionnaires administered to 40 KNC employees.
What does the main body of the research cover?
The main body integrates literature review, detailed methodology, and empirical analysis, which includes demographic findings and a linear regression model showing the correlation between BSC variables and supply chain performance.
Which keywords define this study?
Key terms include Balanced Scorecard, Supply Chain Performance, Kenya Nut Company, Performance Measurement, and Strategic Management.
How does the Balanced Scorecard improve supply chain performance at KNC?
By providing a balanced view beyond traditional financial metrics, the BSC enables KNC to manage intangible assets like product quality, customer relationships, and internal process efficiencies more effectively.
What were the major challenges identified in the implementation of the BSC?
The study identified that the most significant challenges are the time-consuming nature of developing the scorecard, the excessive number of measures used, and the inherent difficulty in selecting the most relevant metrics for the organization.
What does the regression analysis reveal about the relationship between BSC and performance?
The regression model revealed that 73% of the variation in supply chain performance at KNC is explained by the four BSC independent variables, confirming a significant positive impact.
What is the final recommendation of the author?
The author recommends that KNC should adopt missing critical measures, such as return on supply chain assets and cost per operation hour, to better align their strategic goals and overcome operational bottlenecks.
- Arbeit zitieren
- Branice Ashioya (Autor:in), 2015, Balanced Scorecard and Supply Chain Perfomance. The Case of the Kenya Nut Company, München, GRIN Verlag, https://www.grin.com/document/287604
