Six dimensions of balanced scorecard

The six dimensions of supply chain balanced scorecard include financial dimension, customer dimension, business process dimension, sustainable development dimension, supplier dimension and information dimension. The internal relations between them are as follows: sustainable development is the premise, information is the auxiliary means of sustainable development, suppliers are the guarantee of sustainable development, business processes are the foundation of sustainable development, winning customers is the key to sustainable development, and finance is the ultimate business goal. Described in visual language, the overall strategic performance of supply chain is equivalent to a big tree. Only "deep roots" (strong sustainable development ability), "strong branches" (efficient business process), "abundant leaves" (high customer satisfaction), "rich soil" (high degree of informationization) and "full water" (harmonious relationship with suppliers) can we finally "bear fruit" (good financial benefits).

I. Customer dimension

One of the goals of supply chain is to provide lasting and stable income for customers in the whole supply chain. In order to achieve this goal, the supply chain must carry out customer management, understand customer needs, evaluate the degree of meeting customer needs, and strive to deliver the right products or services to specific customers at the right time and place at reasonable prices and ways, increase customer value, improve flexibility and reliability, so as to meet and exceed customer expectations.

As the market orientation and profit source of supply chain, customers are the main driving factors of supply chain performance evaluation. In order to obtain long-term financial performance, the supply chain must create products and services that customers are satisfied with, constantly improve the quality of products and services, constantly change the customization requirements of customers, and constantly reduce prices and market preferences, all of which increase the operating costs and response cycle pressure of the supply chain. Nowadays, customers pay more and more attention to the added value or cost savings brought by products, which makes the supply chain must improve its management level and pursue better operational performance in every link, otherwise it will lose its competitive advantage. Therefore, the selection of evaluation indicators should focus on reflecting the wishes and needs of customers, which can be general indicators reflecting customer value and customer feedback, or indicators focusing on specific areas such as customer value.

Second, the business process dimension

The goal of the supply chain corresponding to this dimension is to reduce waste, compress time elasticity and reduce costs accordingly. Because the third chapter of itk's master's degree thesis for Dongdong is stuck in the framework of supply chain performance evaluation system of balanced scorecard, the 0v chain process involves the production and operation of supply chain members, which is the key point for enterprises to improve their business performance. This process links the performance of different members and forms the overall effect of the supply chain. This connection makes the members of the supply chain have a clear goal of transporting overseas Chinese. The improvement will also help the whole supply chain to shorten the production time of products, improve the efficiency, proportion and core competitiveness of business process value-added activities, achieve lower process operating costs and higher operational flexibility-responsiveness, shorten the production lead time, attract and maintain the value needed by customers, and meet the expectations of shareholders for financial benefits.

The business process of supply chain includes supply logistics from suppliers to core enterprises, internal logistics of core enterprises, distribution logistics of distributors and end customers, and accompanying waste logistics and recycling logistics. For these FIFs, they are generally composed of transportation, warehousing, distribution and processing, packaging, loading and unloading, information processing and other activities. The efficient operation and effective integration of these logistics activities (including internal integration of similar activities and external integration between different activities) can reduce costs and provide high-level customer service. Generally speaking, in the supply chain logistics activities, transportation and warehousing account for the largest proportion of logistics costs.

The operation of supply chain business process should be grasped from two new angles: one is to straighten out the relationship between all participants in the existing process, shorten the cycle of business process and reduce the cost at the same time. The essence of supply chain philosophy is to integrate, share and coordinate the functions within and between enterprises, thus reducing waste and improving supply chain performance. Because the process involves the production and operation of supply chain members, such indicators will link the performance of different members to the whole supply chain process. This connection makes the supply chain members have clear goals for their own operations, and its improvement will also be beneficial to the improvement of the whole supply chain. Second, we must predict and influence the needs of customers. Supply chain management should jump out of short-term operation, actively seek the market, carry out product innovation and transformation, and firmly grasp customers.

Third, the level of sustainable development.

Improving product, process innovation and partnership management is another goal of supply chain. The sustainable development of supply chain is directly related to its value. Severe global competition requires continuous improvement and innovation of the supply chain, exploring and integrating the internal and external resources of the supply chain, improving the operational efficiency of existing processes, improving the quality of products and services, and developing new products. In order to create long-term performance, the supply chain must cultivate good learning ability and establish a solid development foundation. One of the characteristics of supply chain balanced scorecard is to avoid short-term behavior and emphasize the importance of future and development. At the same time, it is not limited to the transformation and upgrading of traditional equipment, but also pays more attention to the input of employee systems and business processes. Pay attention to the analysis of the gap between the ability to meet the demand and the existing ability, and pay attention to the internal skills and abilities. These gaps will be made up by staff training, technical transformation and new product development. Finally, improve the overall learning, organization and coordination ability of the supply chain.

Fourth, the financial level.

Financial indicators have always been the most widely used indicators in performance appraisal. Although the evaluation of supply chain balanced scorecard focuses on process orientation and non-financial indicators, highlighting the competitive value of supply chain, increasing the contribution rate of supply chain partners to supply chain from the perspective of supply chain as a whole, maximizing the profits of supply chain partners, creating high profits, realizing cash flow growth and obtaining higher return on assets are still the ultimate goals of other aspects, and of course, the ultimate goal of supply chain. The realization of business objectives makes the cost artificially reduced, the marginal rate of return improved, the cash flow better optimized, and higher income and capital recovery rate obtained. Therefore, the financial optimization of the whole supply chain is still the top priority. Because the general financial indicators are mainly based on cash flow and traditional financial accounting, there is no direct incentive for future profitability. Supply chain capital includes accounts receivable, factory equipment, capital and inventory. The decrease or increase of capital liquidity will lead to the decrease of the efficiency of supply chain financial value. We try to establish financial evaluation on the basis of cash flow drive, with the behavior and process of driving cash flow as the main goal.

Verb (abbreviation for verb) supplier dimension

Supplier management is the basic link of supply chain management. Based on the integrated and effective management and application of supply-related information of suppliers and core enterprises, it comprehensively manages and supports the current situation and history of suppliers, products and services provided, communication, information exchange, contracts, funds, cooperative relationships, cooperative projects and related business decisions. Its goal is to minimize transaction costs and maximize supply chain benefits, establish a stable supplier relationship, and realize close cooperation among suppliers, sharing risks and benefits.

The supplier's performance has more and more influence on manufacturing enterprises, which affects the success of manufacturers in delivery, product quality, lead time, inventory level and product design. Suppliers play a very important role in the material supply of enterprises and have a great influence on the overall success of the supply chain. Therefore, the first-class and excellent suppliers who can provide a series of comprehensive services have fewer problems in supply quality and distribution, which ensures the success of the whole supply chain at the source. When a supplier provides comprehensive services, he can manage the parts, activities and services of the supply chain system and manage his own suppliers. Manufacturers can develop close relationships with full-service providers. In the design of new products, suppliers are required to get involved in procurement and engineering as early as possible, so as to realize all the design and manufacturing work, instead of completing these work by themselves, thus reducing the total cost of the supply chain. In order to scientifically and objectively reflect the operation of suppliers' supply activities, understand suppliers' shortcomings and feed them back to suppliers, it can promote them to improve their performance, thus improving the overall performance level of the supply chain and laying a good foundation for better completion of supply activities in the future.

Sixth, the information level.

The goals of the supply chain also include reducing costs and improving service levels. However, the key to achieve this goal is to ensure the real-time and feasibility of relevant information. The supply chain balanced scorecard based on supply chain enterprises can be said to be an information system, which is an information system for transmitting enterprise strategic target information and evaluating supply chain management. Therefore, enterprises must ensure the effectiveness of information at high speed, reduce the bullwhip effect with high quality, realize the deep enjoyment of information, and face the uncertain market environment with efficient variability management.

Information includes information and analysis about inventory, transportation, facilities and customers in the whole supply chain. Information is probably the biggest driving factor for the first operation of the supply chain, because it directly affects the rest of the opportunities to ask managers for information, thus making the supply chain more responsive and more profitable. For example, using the information of customer demand pattern, manufacturers can produce and reserve products according to customer demand, and customers can get them immediately when they need them, which makes the supply chain extremely responsive to the market. This demand information can also improve the profitability of the supply chain, because manufacturers can better predict demand and only produce the required quantity. Information can also improve the profitability of the supply chain by providing distribution solutions for managers. For example, provide information for managers to choose or adopt lower alternatives while still meeting the necessary service requirements. As the main driver of supply chain, information may be ignored because it is not a physical form. Many information methods profoundly affect every part of the supply chain. On the other hand, information links the different stages of the supply chain, makes each stage coordinate with each other, and plays an important role in maximizing the profits of the whole supply chain. On the other hand, information is also very important for the daily operation of each stage in the supply chain. For example, daily production scheduling uses demand information to make production plans, so that factories can produce qualified products in an efficient way. Warehouse management system uses information to clearly mark the size of inventory, which is the basis for manufacturers to decide whether to issue new orders to replenish inventory.