The Application Of Balanced Scorecard As A Measure Of Supply Chain Performance: The Case Of Ethio Telecom
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Date
2020-06
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Addis Ababa University
Abstract
The purpose of this study was to examine the application of Balanced Scorecard (BSC) as a
measure of supply chain performance in ethio telecom. Mixed approach of using both quantitative
and qualitative data was employed. Descriptive research design was used to identify the prospects
and challenges of BSC in measuring the supply chain performance along with assessing the
alignment of the four perspectives with the supply chain performance measures. Survey data was
collected from 131 respondents from employees of ethio telecom supply chain division and six
section managers were also interviewed. The data was analyzed using descriptive statistical tools
such as frequency distributions and mean values using Statistical Package for Social Sciences
(SPSS) software. The findings of the study revealed that the application of BSC resulted in a
number of benefits such as increment in the knowledge of employees about the organization’s
strategy, alignment of supply chain performance measures with the four BSC perspectives of
finance, customer, internal process, and learning and growth, opportunity to identify potential
improvement initiatives, improved accountability, delivery time and cost reduction, quality
improvement, flexibility, revenue growth, value to customers and improved partnership
management. However, several challenges are also identified. These are lack of integration of the
BSC with other control systems, more focus on financial measures, lack of communication and
feedback from employees, failure to relate key measures of supply chain to performance drivers,
lack of efficient reporting tool, lack of training and less attention on the learning and growth
perspective. Therefore, the study recommends use of IT and information systems to integrate the
BSC with other control systems, following balanced approach for all the four perspectives,
availing communication and feedback mechanisms, periodic review of the supply chain measures
to include key performance drivers and more focus on training and human development.
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Keywords
ethio telecom, prospects, challenges, supply chain