Sustainability in Performance Measurement and Management Systems for Supply Chains

Abstract

Aspects of sustainability – understood as the ability to manage economic, social and environmental performance at the same time – are becoming more important in Supply Chain Management. This is a challenge as sustainability adds less quantifiable aspects to Supply Chain Management than classic process aspects. On the other side measuring sustainability is crucial for the implementation of modern Supply Chains Management and to manage sustainably in the daily business. This contribution discusses the integration of sustainability in performance measurement and management systems (PMMS) for Supply Chain Management. Therefore in the paper firstly an overview of definitions and developments in performance measurement and management systems and a structure for PMMS are given. Secondly guidelines for good and modern PMMS are discussed. Thirdly existing approaches for Supply Chain Management PMMS (e. g. KPIs, TCO, value driver trees and balanced scorecards and maturity assessments) are presented and the suitability for Supply Chain Management as well as the possibility to integrate aspects of sustainability are examined. Lastly the fulfilment of the requirements and the ability to cope with the challenges of the approaches is discussed.