Development of a Framework for Sustainable Outsourcing: Analytic Balanced Scorecard Method (A-BSC)

Abstract

Nowadays, many enterprises choose to outsource its non-core business to other enterprises to reduce cost and increase the efficiency. Many enterprises choose to outsource their supply chain management (SCM) and leave it to a third-party organization in order to improve their services. The paper proposes an integrated and multicriteria tool useful to monitor and to improve performance in an outsourced supply chain. The Analytic Balanced Scorecard method (A-BSC) is proposed as an effective method useful to analyze strategic performance within an outsourced supply chain. The aim of the paper is to present the integration of two methodologies: Balanced Scorecard, a multiple perspective framework for performance assessment, and Analytic Hierarchy Process, a decision-making tool used to prioritize multiple performance perspectives and to generate a unified metric. The development of the framework is aimed to provide a performance analysis to achieve better sustainability performance of supply chain. A real case study concerning a typical value chain is presented.

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