Measuring Supply Chain Performance Using BSC Model: The Case Of Cadila Pharmaceutical Plc
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Date
2018-06-13
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Addis Ababa University
Abstract
The study sought to determine the Balanced Scorecard measures on supply chain performance at
Cadilla Pharmaceutical PLC. The objectives of the study were to establish the extent to which
the BSC measures have been used at Cadilla Pharmaceutical in measuring their supply chain
performance and to validate the result using customer/distributors survey. The research design
involved were descriptive and inferential explanatory design, supported by thematic analysis.
Data were collected from 125 Cadilla employees using a questionnaire and interview guide that
were administered to employees and conducted by researcher. Tables were used to present data.
Descriptive statistics like mean and standard deviation were used to analyze demographic and
each constructs under investigation, whereas inferential statistics like regression analysis were
used to measure the relationship between independent (BSC measures) and dependent (supply
chain performance). The result of the study established that the BSC measures are greatly used
to establish the supply chain performance at Cadilla Pharmaceuticals. Customer measures
(b=0.371) has the most positive influential effect on supply chain performance, followed by ,
innovation, learning and growth, financial measures and internal business measures (b = 0.325,
b = 0.292, and b = 0.245) respectively at p value <0.001. It was also found that there is a
significant relationship between BSC measures and supply chain performance represented by R2
value of 0.811 which translates to 81.1% variance explained by the four independent variables of
financial measures, customer satisfaction, internal business processes, learning and growth. The
overall supply chain performance of Cadilla pharmaceutical from distributors perspective is
moderate performance. But, in contrast to this there are problems related to product availability,
on time delivery, communication systems, flexibility, after sale service and customer satisfaction
survey from customer perspective. Therefore from the result it can be concluded that BSC
measures at Cadilla pharmaceuticals is strongly affecting their supply chain performance. It was
also recommended that the company should keep using BSC as performance measurements as
holistic performance perspective in such a way that they can solve problems raised by
distributors. Finally, based on the limitation of this study, further research can be done on a
wider group of companies to establish whether the BSC measures are better in measuring Supply
chain performance in pharmaceutical industry
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Keywords
balances score card, supply chain performance