Improving distribution-performance for Ready-mix Concrete at Van Nieuwpoort Transport

Abstract

Van Nieuwpoort Transport (VNT) wants to optimise its logistics by applying the Balanced Scorecard (BSC). However applying the BSC to optimize VNT’s logistics presents five challenges: (i) no experience with the BSC, (ii) lacking performance drivers, (iii) traditional culture, (iv) ambiguous leadership commitment, (v) scarce staff-resources. The fourth and fifth challenges are of major concern because the conventional BSC-approach requires both leadership commitment and staff-resources. This report presents a BSC-proposal for optimising VNT’s logistics that is tested by a proof of concept. Based on desk research and interviews the conventional BSC-approach (Kaplan, 2010) can be adapted by a selection of frames – a modified BSC-frame, a logistics frame and a Performance measurement system-frame – to propose a suitable BSC to VNT for logistics optimisation. Nine opportunities (SWOT) for logistics optimization, of which three lack leadership commitment, are identified based on interviews, observation and data-analysis. A BSC, presented by a strategy-map consistent with eight out of nine opportunities, is proposed to VNT. The implementation plan is a roadmap to achieve the strategic goals for the perspectives of internal process and learning & growth of the strategy map. A Prototype-PMS that has the TMS as only data-source is designed, developed and used for evaluation. The practical utility is that logistics optimization by means of the proposed BSC is possible to some extent. The scientific utility is that the proof of concept shows the feasibility of the approach used in this situation. Therefore main conclusion is that a suitable BSC is proposed to optimise VNT’s logistics while taking into account that extensive triangulation limited internal –and structural validity of the implementation plan and PMS-prototype. Some recommendations are made to improve the validity and utility of the proposed BSC.