Measuring value added along the supply chain: a transfer pricing perspective

This paper introduces and explains a conception of measuring value added along the supply chain from a transfer pdcing perspective. This non-conventional supply chain (valuechain) perspective invites the reader to consider measuring added value as it moves between organisations using a model which encourages congruent behaviour between supply chain partners. A proposed model adapted from the Balanced Score Card model (Kaplan and Norton, 1996) provides a tool to measure tangible and intangible value between firms using transfer pricing. It is argued that embracing and appropdately engaging this model will enable organisations to better measure inter-organisational performance along their supply chain.