CONNECTION OF THE BALANCED SCORECARD AND THE BULLWHIP EFFECT

Bullwhip effect has strong academic and business interest due to the potential malfunctions that can be generated in the supply chain if it occurs. There are several reasons behind and numerous consequences. There is still no ready to use solution to eliminate the impacts. Balanced Scorecard is a widely used well known performance measurement framework. Due to the flexible setup adaptability of the tool is quite good in the different industries. Even if the measures used are not the same the frame can be successfully applied. In the literature the combined research of the bullwhip effect and the Balanced Scorecard is not common. However, the scope of the perspectives and the bullwhip effect reasons are quite similar. This paper focus on the analyzation of the connections of the researchers of the Balanced Scorecard and bullwhip effect common literature. The reasons of the phenomenon and the Balanced Scorecard perspectives fits well with each other. The aim is harmonization and synchronization of the two to take advantage of the similarities. Balanced Scorecard is a good framework to group the metrics that shows the presence of the bullwhip effect. Using the measurement system is potentially support the detection of the phenomenon. Applying the mentioned methodology, the KPIs in use are supporting analysation and indication of the bullwhip effect. As a result, the level of control on the phenomenon can be increased. The extension of the common research of the two areas can lead to improvement from the practical aspect.