Key performance indicator of sustainability in the Malaysian food supply chain

Abstract

The food supply chain in Malaysia plays a significant function in the nation’s economy. Since the industry is dominated by small and medium sized enterprises (SME), the local food supply chain must satisfy consumer demand. In order to help Malaysia to become more self-sufficient, improvements in the supply chain in terms of key performance indicators (KPIs) are important. However, it is common that strategic and operational KPIs are different and a disparity often exists between them. To be more successful for measuring the entire supply chain, the linkage of strategic objectives to operational objectives must be aligned to ensure the appropriate KPIs measure a proper connection between what they do and what the business achieves. The objective of this article is to propose a preliminary key indicator to measure sustainable performance within the perspective of Malaysian food supply chain. Key indicators have been summarized based on the previous researches focusing on the issue between 2007 until 2018. An overall of nine perspectives on sustainable performance measures in the food supply chain involved employee, supplier, health and safety, community, customer, cost effectiveness, quality, compliance and efficiency. These perspectives can be classified into three hierarchies; namely, strategic, tactical and operational. This paper proposes integration of key indicators as a starting point to evaluate the generic performance of Malaysia food supply chain.

A triple bottom line balanced set of key performance indicators to measure the sustainability performance of industrial supply chains

“…Finally, authors also noted that Inventory cost spans from the strategical to the operational decision levels (Liebetruth, 2017;Subramanian and Gunasekaran, 2015). (Baba et al, 2019;Bai et al, 2012;Bhagwat and Sharma, 2007b;Bigliardi and Bottani, 2010;Chan, 2003;Jaju, 2015, 2014;Eskafi et al, 2015;Faisal, 2012;Gunasekaran and Kobu, 2007;Liebetruth, 2017;Mishra and Sharma, 2014;Narimissa et al, 2020;Olugu and Wong, 2012;Sambasivan et al, 2009;Shafiee et al, 2014;Shepherd and Günter, 2006;Subramanian and Gunasekaran, 2015) 26.1% 58.1%…”

“…Besides, a few authors used a classification based on the Supply Chain Operations Reference (SCOR) (Bai et al, 2012;Subramanian and Gunasekaran, 2015), developed their categorization (Beamon, 1999;Popovic et al, 2018), or just provided a list of indicators (Ahi and Searcy, 2015;Hassini et al, 2012). Some authors also further characterized the proposed indicators according to decision levels -tactical, strategical, operational (Baba et al, 2019;Liebetruth, 2017), financial base -financial, non-financial (Bhagwat and Sharma, 2007a;Gunasekaran and Kobu, 2007), measurement basequalitative, quantitative (Chan, 2003;Shepherd and Günter, 2006) and components of performance -time, cost, quality, flexibility, asset (Sellitto et al, 2015;Stefanović and Stefanović, 2011). Some contributions focused on other specific characteristics (Narimissa et al, 2020;Said et al, 2020), but the majority did not provide any characterization.…”

“…Customers exert great pressure towards improved sustainability (Luthra et al, 2018) both in individual firms and SCs (He et al, 2019). The customer performance area includes satisfaction (Sopadang et al, 2017), service (Izadikhah and Saen, 2018) and characteristics (Baba et al, 2019). -SC response time.…”

Agri-Food Markets towards Sustainable Patterns

“…FAO [24] puts that "Neither a commonly accepted set of indicators that have to be taken into account when measuring sustainability performance, nor widely accepted definitions of the minimum requirements that would allow a company to qualify as 'sustainable', exist" (p. 9). Moreover, various sustainability performance measurement systems have been proposed [267,[309][310][311][312], and main internal and external factors and drivers pressuring towards sustainable operational practices have been recognized [267,300,[313][314][315][316], with the aim to deliver a number of indicators and contribute to the definition of a framework for sustainability assessment that is useful for the whole agri-food sector, to secure a step-change in operational practices, which will improve the efficiency and sustainability of FSC.…”

Avaliação de fornecedores de empresas do setor cervejeiro

“…O setor de bebidas possui grande diversidade de insumos que compõem o produto final, assim, verifica-se a necessidade do controle do que é entregue e como os fornecedores o fazem. O setor possui relevância no cenário econômico nacional e, de acordo com o Banco Nordeste (2020), gera dezenas de milhares de empregos no País, possui a presença de vários fornecedores e de grandes players com atuação global.…”