The importance of the Balance Scorecard for logistics and supply chain

A Balanced Scorecard is a structured measurement with the goal to measure the integral performance of a business. It contains of a mix of financial and non-financial components of the total supply chain and is used to evaluate the overall organizational or the supply chain performance. Some organizations expands their balanced scorecard with customer remarks and innovation and learning perspectives. It should connect overall goals, strategies and measurements. Each underlying dimension has its own goals and measurements.


The Balanced Scorecard, also called Dashboard, should be easy to read. To make it useful and compact, often colors are used to indicate if a goal will be reached or not. Often used are red, yellow or green indicators to indicate when the company is or is not meeting its targets. Balanced Scorecards should be reviewed regularly, optimum is weekly or monthly. More and more, the dashboard/scorecards is also be applied to external supply chain partners to monitor that their objectives and practices align.