Performance Measurement for Green
Supply Chain Management
Aref Hervani,
Marilyn Helms, and Joseph Sarkis
Benchmarking: An International Journal, Vol. 12, No. 4, pp.
330-353, 2005.
Performance
measurement and assessment of results continues to be an important business
topic. It takes on new importance when applied to measuring innovative
practices such as the greening of supply chains and the reverse logistics
operations of manufacturers. This paper reviews major principles of performance
measurement as well as green supply chain management and offers a framework for
developing a methodology to implement a global supply chain management (GSCM)
performance measurement system. Environmental performance measures are growing
in importance due to both internal corporate pressures as well as external
competitive and environmental issues. These performance systems aid managers in
understanding the trade-offs between environmental dimensions of competing
manufacturing activities as well as seeking to improve these activities through
various benchmarking exercises. The paper’s contribution is a model of GSCM,
outlining flows and pressures as well as listing various environmental measures
for manufacturers to consider in their design, operations and reverse
reclamation processes. Issues related to inter-organizational environmental
performance measurement systems are outlined. The paper discusses the
importance of ISO 14031 and other guidelines for firms to use to aid performance
measurement extending beyond the boundaries of the organization. The paper ends
with areas of potential future research.
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