Abstract
M.Comm.
The purpose of this study was to determine whether a strategic control tool, such as the Balanced Scorecard, could be used within a leading international forwarding and clearing organisation operating in the South African and international logistics markets. The name of the organisation has been concealed, for confidentiality purposes, and therefore in this study the organisation is referred to as SA Logistics.
A literature review was conducted where firstly the elements of strategic control were examined. This was followed by a review of certain strategic control tools such as benchmarking and Economic Value Added models. Then the literature regarding the Balanced Scoreacard was analysed in detail.
The research was conducted in two phases. In the first phase a self-administered questionnaire was sent out to a group of respondents from middle management, within SA Logistics. The questionnaire required respondents to rank on a semantic differential scale their preferences from a proposed set of key performance indicators. These Key performance indicators could potentially be used to exercise strategic control within SA Logistics. The proposed measures obtained from phase one was then verified with a group of executive members of SA Logistics during phase two of the study. Phase two was conducted by means of personal interviews with selected executive members. This verification process helped to determine the business sense of these proposed key performance indicators and allowed executive members to propose changes to these key performance indicators.
The study found that the Balanced Scorecard could be used as a strategic control tool within a clearing and forwarding logistics organisation. The study established that all four of the perspectives of finance, customer, internal and learning/growth measures of the Balanced Scorecard can be tied into key business areas and related measures within SA Logistics. However, in order for this Balanced Scorecard to be widely accepted throughout the organisation, a more centralised approach is required. This study also allowed for a proposed Balanced Scorecard to be compiled for SA Logistics.