Performance Evaluation of PT Kimia Farma Apotek Using the Balanced Scorecard Approach

Pharmacies face the dual challenge of maintaining the quality of pharmaceutical services while ensuring operational efficiency and business sustainability. The year 2023 was selected as a critical post-loss period because PT Kimia Farma Apotek maintained a substantial revenue base but had not yet achieved healthy profitability or operating cash flow. This study aimed to evaluate the company’s performance across the four Balanced Scorecard (BSC) perspectives, explain the imbalance among these perspectives, and formulate recovery priorities. A descriptive observational design with an explanatory sequential mixed-methods approach was used. Company secondary data were analysed quantitatively and subsequently explored through semi-structured interviews with four purposively selected managerial informants. The credibility of the findings was strengthened through source triangulation, methodological triangulation, and member checking. The results showed that the customer perspective was relatively strong and that the organisation possessed learning, technological, and innovation capabilities. However, profitability and operating cash flow remained negative, whereas the national aggregate inventory turnover ratio was 4.24 times per year, equivalent to approximately 86 days of inventory holding. This aggregate turnover figure was not classified in isolation because qualitative findings indicated continuing challenges in inventory allocation, product availability, slow-moving items, and replenishment across the pharmacy network. Internal processes were in place, but promotional activities, complaint resolution, training, and technology utilisation had not been consistently translated into cost efficiency, balanced inventory allocation, service availability, or financial outcomes. The principal finding was a conversion gap: non-financial strengths had not yet been converted into profitability and cash generation. Theoretically, the study demonstrates that the BSC causal chain is conditional rather than automatic because it depends on the reliability of internal processes, disciplined resource allocation, and the quality of strategy execution. Managerial priorities include improving revenue quality, inventory allocation and availability, cost control, customer relationships, employee experience, and data-driven performance governance.