Sustainable benchmarking of supply chains: the case of the food industry

Abstract

Long-term organisational viability and competitiveness should not be evaluated solely in terms of financial measures. Investors, policy makers and other stakeholders increasingly seek to evaluate performance with respect to sustainability – the environmental, social and economic performance of an organisation. But measuring and improving the sustainability performance of supply chains is challenging. Using one of the world's most critical supply chains, the food supply chain, we introduce and apply a multi-stage procedure to help analytically evaluate supply chains’ sustainability performance. The method involves development of sustainability indicators, data collection, data transformation using rescaling and determining of importance ratings using the Analytic Hierarchy Process (AHP). The proposed methodology demonstrates how quantitative statistical data can be combined with expert opinion to construct an overall index of sustainability. Stakeholders can use the index to evaluate and guide sustainability performance of supply chains. Strengths and opportunities, as well as limitations of the methodology are discussed, and sensitivity analysis is performed.