Performance measurements in the greening of supply chains

Abstract

In response to increasing demands on improved environmental performance, companies need to develop their capabilities in assessing the environmental performance of their operations. Knowledge among practitioners as well as solid research results in this area lacks. This paper aims to present a framework of dimensions important to consider regarding environmental measurement in supply chain management. The paper also aims to present a practical example on how environmental performance measurements can be a success by applying these dimensions. Design/methodology/approach Literature regarding logistics management and performance measurement is coupled with theories regarding environmental logistics and green supply chain management. A framework is developed. A case study based on four actors in a reverse supply chain is used to illustrate the framework. Findings The paper outlines important aspects to consider in the design of environmental performance measurements in supply chain management and identifies shortcomings in existing research. The case presents successful examples of how environmental performance measurements can be applied across managerial levels as well as company borders in a supply chain. Practical implications The literature review shows shortcomings in the measuring tools applied today. The case provides examples of how these shortcomings can be addressed. Originality/value This paper addresses the intersection between environmental logistics and performance measurements. The case shows how environmental performance measurements can be applied over a single company's borders by including four different actors in the supply chain.

Environmental practices as offerings and requirements on the logistics market

“…While the product level can seem attractive when carbon labelling products for customers, it carries many problems related to the correctness of data, assumptions that need to be made, and-not least-the costs associated with this procedure [35]. Additional difficulty arises when trying to measure environmental impact from supply chains including complicated structures and multiple organisations [7,20]. Lieb and Lieb [30] mention different ways in which logistics companies address the carbon footprint ''challenge'': identifying the company footprint, developing a carbon footprint calculator, and developing carbon footprint metrics, all efforts to be prepared to meet potential customer requirements.…”

Green supply chain performance measurement using fuzzy ANP-based balanced scorecard: a collaborative decision-making approach

“…The literature on the green SC performance is wide-ranging Olugu et al 2010;Tsoulfas and Pappis 2008). A good level of recognition is found amongst practitioners on the necessity for more knowledge on environmental performance across different actors in an SC (Björklund et al 2012). Modern SC performance measurement includes 'ecological sustainable performance measure' as a component (Bai et al 2012).…”

“…Although a good number of studies have been reported in the literature, there is a lack of benchmarked knowledge on the measurement of green performance in SCs (Björklund et al 2012). Existing performance measurement approaches disregard sustainable development elements, viz., social and green aspects (Cuthbertson and Piotrowicz 2008).…”

Understanding reverse supply chains

“…This is even more the case for the underdeveloped area of RSC. Where environmental performance measures have been identified, such as by Azevedo et al (2011), Bjorklund et al (2012 and Bai et al (2012), these are more often linked to green supply chain management practices generally, rather than RSC operations in particular. McElroy and Engelen (2012) argue that any absolute metrics should be as descriptive as possible to give them meaning or context.…”