A dynamic supply chain BSC-based methodology to improve operations efficiency

This paper presents how to objectively set up the process for activation of the future action plans from a supply chain Balanced Scorecard (BSC), aligning such an activation process to reach the main objectives and being able to save resources. Additionally, it also shows how to define supply chain business scenarios based on the future expected values of the Key Performance Indicators (KPI). Once the future business scenario has been chosen, the KPI values associated with this scenario will become the new KPI values of the BSC in order to align efforts and save resources Further, the strategic objectives associated with the KPIs may also be extensively retuned, thus redefining their target values. From the application carried out, there were four KPIs whose values needed, in absolute terms, to be increased and four other KPIs to be decreased. Additionally, the associated strategic objectives were retuned; for example, the value of the strategic objective “To reduce product development costs” was initially set in the BSC at 10 % but it was deduced to 8% as a consequence of the application of the proposal. As a result, this methodology has aligned all the future efforts of a whole supply chain in order to reach one point on a plane, which is a combination of interrelated supply chain KPI.