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.