The Procurement Glossary » Balanced Scorecard
Balanced Scorecard
Strategy & Operations
Definition
A performance framework that tracks objectives across several dimensions rather than cost alone.
Explanation
Applied to procurement, a balanced scorecard measures cost, quality, delivery, risk and innovation together, preventing the tunnel vision of chasing savings at the expense of service or resilience. It aligns day-to-day metrics with strategic goals.
Example
The procurement scorecard weights savings, on-time delivery, supplier risk and sustainability, not just price.
Related terms
- Key Performance Indicator (KPI) — A metric chosen to track progress toward a specific objective.
- Supplier Scorecard — A structured summary rating a supplier across key metrics to track and compare performance over time.
- Procurement KPI — A quantified measure of procurement performance, such as savings, cycle time, compliance or supplier OTIF.
- Benchmarking — Comparing prices, costs or performance against internal history, peers or the market to judge competitiveness.
Frequently Asked Questions
What is Balanced Scorecard?
A performance framework that tracks objectives across several dimensions rather than cost alone. Applied to procurement, a balanced scorecard measures cost, quality, delivery, risk and innovation together, preventing the tunnel vision of chasing savings at the expense of service or resilience. It aligns day-to-day metrics with strategic goals.
Can you give an example of Balanced Scorecard?
The procurement scorecard weights savings, on-time delivery, supplier risk and sustainability, not just price.
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