Identication and design key performance drivers, measures and processes for a logistics service provider in a fragmented supply chain

Abstract

The aim of this document is to review different engineering methods that can be used to identify performance drivers, measures and processes and as a result align the most key performance drivers of the IMPERIAL companies with Nampak Tissue’s key performance drivers. According to Kanji (2002) effective management of a company depends on how effectively performance is measured. As a result it is necessary to develop and implement a system for performance measurement. IMPERIAL Logistics is a logistics and supply chain management service provider (LSP) based in South Africa. IMPERIAL Logistics focus not only on warehousing, distribution and transportation but also on improving services, value adding, reducing costs and exceeding their clients’ expectations in the supply chain environment. In a fragmented supply chain such as IMPERIAL Logistics and Nampak it is of great importance to align each company in the supply chain according to its key performance drivers and measurements. It is essential that the aligned companies share common goals and visions to ensure optimal satisfaction of each company. The Balanced Scorecard creates a cause and effect relationship between measures from each of the four perspectives, namely: the learning and growth perspective, internal business process perspective, the customer perspective and the financial perspective; it can also be used as a strategic management system or as a communication tool in the organization. For each of the strategic objectives identified, measure will be created. The final stage will consist of aligning the key drivers of the IMPERIAL companies with Nampak’s drivers. In conclusion this project has analyzed and used the Balanced Scorecard method to identify the key performance drivers of each company, created measures for each performance driver and as a result create a performance measurement system.