Abstract
The ecological issues arising from manufacturing operations have led to the focus on environmental sustainability in manufacturing. This can be addressed adequately using a closed-loop supply chain (CLSC). To attain an effective and efficient CLSC, it is necessary to imbibe a holistic performance measurement approach. In order to achieve this, there is a need to adopt a specific approach for a particular product rather than being generic. Since sustainability has direct environmental footprints that involve organizational stakeholders, suppliers, customers and the society at large, complexities surrounding supply chain performance measurement have multiplied. In this study, a suitable approach has been proposed for CLSC performance measurement in the automotive industry, based on reviewed literature. It is believed that this approach will result in increased effectiveness and efficiency in CLSC performance measurement.
Highlights
Sustainable development has been expressed as a value system aimed at the orientation of decision makers and their management to transform their responsibility for environmental, economical and Sustainability 2010, 2 social behavior into business practices within the legitimacy of the society at large [1,2,3,4]
A suitable approach for the performance assessment of the automobile closed-loop supply chain (CLSC) has been proposed in this study through a careful review and analysis of the automotive industry and CLSC
The study began with the establishment of the basis for performance measurement of a green supply chain with respect to the automotive industry using a new approach
Summary
Sustainable development has been expressed as a value system aimed at the orientation of decision makers and their management to transform their responsibility for environmental, economical and Sustainability 2010, 2 social behavior into business practices within the legitimacy of the society at large [1,2,3,4]. In order for a company to carry out its operations effectively, there is a need to comply with regional, national and international laws and regulations while satisfying customers and stockholders’ requirements It is no longer acceptable for any manufacturing company to be internally focused, as environmental issues no longer end at the regulatory boundary but are necessarily boundary-crossing concerns. A new model for CLSC performance measurement has been established in this study for the automobile industry. This was achieved based on information gathered from various literature. The rest of the paper is organized as follows: Section 2 comprises the literature review in general, including the definition of CLSC, its benefits, performance measurement and its benefits, and previous studies on critical performance areas in green supply chain management. The paper culminates with conclusions and recommendations for further studies in this area
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