X-BSC - Measuring the Performance of Truly Strategic Supplier Relationships

Initiatives to improve relationships with key suppliers are under way in many companies. One important decision relating to the design and administration of strategic supplier relationships is which concept to apply when measuring their performance. The relationships with strategic suppliers are multifaceted and require a multidimensional measurement. Furthermore, measuring their performance has to be tailored to the specific situation, as not all strategic supplier relationships are created equal. The concept of the Balanced Scorecard (BSC) is frequently employed to support the implementation of the strategies of individual business units within a multibusiness organization. This Practix best practices report describes how the principles of the BSC concept were successfully applied to strategic supplier relationships at a company from the automotive industry under the term Cross-Balanced Scorecard or X-BSC.