The purpose of this study was to examine the application of Balanced Scorecard (BSC) as arnmeasure of supply chain performance in ethio telecom. Mixed approach of using both quantitativernand qualitative data was employed. Descriptive research design was used to identify the prospectsrnand challenges of BSC in measuring the supply chain performance along with assessing thernalignment of the four perspectives with the supply chain performance measures. Survey data wasrncollected from 131 respondents from employees of ethio telecom supply chain division and sixrnsection managers were also interviewed. The data was analyzed using descriptive statistical toolsrnsuch as frequency distributions and mean values using Statistical Package for Social Sciencesrn(SPSS) software. The findings of the study revealed that the application of BSC resulted in arnnumber of benefits such as increment in the knowledge of employees about the organization’srnstrategy, alignment of supply chain performance measures with the four BSC perspectives ofrnfinance, customer, internal process, and learning and growth, opportunity to identify potentialrnimprovement initiatives, improved accountability, delivery time and cost reduction, qualityrnimprovement, flexibility, revenue growth, value to customers and improved partnershiprnmanagement. However, several challenges are also identified. These are lack of integration of thernBSC with other control systems, more focus on financial measures, lack of communication andrnfeedback from employees, failure to relate key measures of supply chain to performance drivers,rnlack of efficient reporting tool, lack of training and less attention on the learning and growthrnperspective. Therefore, the study recommends use of IT and information systems to integrate thernBSC with other control systems, following balanced approach for all the four perspectives,rnavailing communication and feedback mechanisms, periodic review of the supply chain measuresrnto include key performance drivers and more focus on training and human development.