Evaluation of Supply Chain Performance Using the Balanced Scorecard Approach During the COVID-19 Pandemic: A Case Study of Js General Hospital

Evaluation of Supply Chain Performance Using the Balanced Scorecard Approach During the COVID-19 Pandemic: A Case Study of Js General Hospital

Doni Maryono, Rita Ambarwati
DOI: 10.4018/978-1-6684-6762-6.ch024
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Abstract

The pandemic has an impact on almost all sectors of people's lives, both in the economic, political, and socio-cultural sectors. The government has implemented large-scale social restrictions (PSBB) as an effort to stop the spread of the COVID-19 virus. With the PSBB, it causes disruption to the hospital supply chain management. As a step to anticipate the hospital's impact on the PSBB, the hospital needs to evaluate the performance of supply chain management. The purpose of this chapter is to describe the performance evaluation of hospital supply chain management using a balanced scorecard approach. A new finding from this study is to measure the performance of hospitals experiencing various disruptions in their supply chain management caused by the COVID-19 pandemic with a balanced scorecard. The author concludes that measurements with the balanced scorecard approach can provide information about the performance of hospital supply chain management broadly in areas experiencing disruption due to the COVID-19 pandemic.
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Introduction

In the operational implementation of the company's organization, for the control function, information is needed about how it is performing. (Solihin, 2009) says managers will not be able to plan, organize, lead, and control effectively if they do not have adequate information. Information is a source of knowledge and understanding of a person on a problem that is needed to make a correct decision. The leaders or managers who will perform the control function. As explained that in their informational role, managers continue to look for information that contains the performance of their units, managers' senses scan the unit's internal activities and their environment, Mintzberg in (Raymond & Schell, 2011). From the information obtained, it is known that the performance has been effective and efficient or not. (Solihin, 2014) said the goal to be achieved through controlling is the availability of tools for managers to direct and motivate their subordinates so that they can work towards organizational goals and provide feedback to managers on how well their subordinates are performing. Managers need to make corrections if their performance is low but if it is according to the planned standards then the company's operations are good and maintained to achieve the company's goals that have been set.

The company is a business organization which is an open system. Barnard in (Solihin, 2009) said that the organization as an open system like any other open system that will get influence from the environment. The company's environment will provide various inputs to the organization, so the company must always adapt itself to the development of the company's environment in order to maintain its sustainability. Grant in (Solihin, 2009) said that the general environment of the company consists of various factors such as social values, education level, politics, economy, law, demography, natural resource environment, technology. On the legal side, in 2020 the government issued a large-scale social restriction (PSBB) regulation to control the ongoing pandemic so that it does not spread further. The existence of this government policy has an impact on the nets of almost all companies. Disturbances that occur in the supply chain in the form of demand fluctuations and changes in the length of the order (lead time) are operational disturbances that commonly occur in the supply chain. Supply Chain Management is the management of the activities of procuring goods and services, converting them into semi-finished goods and final products, as well as delivery through the distribution system (Haizer & Render, 2010).

Strategic planning allows companies to anticipate conditions that are always changing, and provide a road map and direction to go and how to achieve it (Jauch & Glueck, 2004). Strategic planning is an important management tool that can help organizations perform their duties better, facilitate strategy development and implementation, and make organizations more sensitive to customer and market needs (Obeng & Ugboro, 2008). Strategic planning (strategic planning) is vital for the organization in maintaining its survival (Wheelen & Hunger, 2004).

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