An integrated BSC‐AHP approach for supply chain management evaluation

Abstract

PurposeThe purpose of this paper is to develop an integrated balanced scorecard (BSC) analytical hierarchy process (AHP) approach for supply chain management (SCM) evaluation. It aims to measure SCM performance from the following four perspectives: finance, customer, internal business process, and learning and growth.Design/methodology/approachThe BSC is developed in the paper based on an extensive review of literature on SCM performance measures, supported by AHP analysis.FindingsThe paper develops a BSC for SCM evaluation and proposes a method to prioritize the different performance levels in any organization using AHP methodology. It also suggests from the view of different decision levels and overall performance measurement that is the best BSC perspective.Practical implicationsThe integrated BSC‐AHP methodology developed in this paper provides useful guidance for practical managers in evaluation and measuring of SCM in a balanced way.Originality/valueThis paper proposes a balanced performance evaluation system for SCM. While suggesting BSC, different SCM performance metrics have been distributed into four perspectives. Different performance levels are highlighted and preferred BSC perspectives are suggested.