A Warehouse Social and Environmental Performance Metrics Framework

Patricija Bajec,Danijela Tuljak-Suban,Ivona Bajor

doi:10.7307/ptt.v32i4.3390

Patricija Bajec, Danijela Tuljak-Suban + Show 1 more

Open Access

https://doi.org/10.7307/ptt.v32i4.3390

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Abstract

To improve the supply chain performance in all three aspects of sustainability (social, economic, and environmental), a comprehensive sustainable performance measurement system that captures all the supply chain partners’ efforts and commitments is required. Warehouse, as the second largest logistics source of environmental pollution in the supply chain has been almost completely overlooked and ignored in the past studies. To fill this gap, a warehouse performance metrics framework for environmental and social performance measures was proposed using a novel Fuzzy Delphi and Best-worst methodological approach. The method is less time-consuming than the Analytic Hierarchy Process or Analytic Network Process, it does not address whether criteria are dependent or independent, requires fewer comparisons of criteria, but still produces reliable and credible results. The presented framework consists of 32 equally formulated environmental and social performance indicators, including formulas and measurement units. The 14 most important indicators are ranked according to the requirements of different stakeholders.

Highlights

To generate higher performance and more opportunities for competition, the companies are trying to maintain balance between economic, social and environmental performance of all supply chain partners
The primary purpose of this study is to propose a general warehouse performance metrics framework, which enables warehouse managers and decision-makers the assessment of two dimensions of sustainability, social and environmental, which are harmonised with the key groups of stakeholders
Encouraging is the fact that the criteria renewable fuel consumed, recycled material used for packaging purposes, transport and self generated electricity consumed did not rank in the group of most important criteria, but right behind it

Summary

Introduction

To generate higher performance and more opportunities for competition, the companies are trying to maintain balance between economic, social and environmental performance of all supply chain partners. Appropriate sustainable measures have to be created and implemented. Conventional sustainable indicators are not sufficient as they often focus only on the economic perspective [1]. There are few standards of sustainable measurement. The social and environmental dimensions of sustainability are ignored. Not all performance indicators can be quantified, which allows for subjectivity and bias [2]. There are trade-off situations in cases of simultaneous improvement of performance in different sustainable areas [3]. Higher performance in one dimension of sustainability can lower the performance of another sustainable dimension [4]

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