Skip to main content
SpringerLink
Log in

Integrating Sustainability Metrics in the Supply Chain Performance Measurement System

  • Chapter
  • First Online:
Multiple Helix Ecosystems for Sustainable Competitiveness

Part of the book series: Innovation, Technology, and Knowledge Management ((ITKM))

Abstract

Sustainability impact of business activities, taking in account the three dimensions of the triple-bottom-line (economical, environmental and social), has become an important issue in the last years due to growing public awareness, and the introduction of legislations mainly in developed countries. From an industrial perspective, sustainable development must be extended beyond organizational boundaries to incorporate a supply chain approach.

This paper aims to contribute to the theoretical body of literature by proposing a five step model to supply chain sustainability performance assessment. The model is based on the Balanced Scorecard framework to define the company sustainability strategy and uses Global Reporting Initiative (GRI) and ISO 14031 indicators to measure the sustainability performance of it upstream supply chain.

The proposed model helps companies in the analysis of trade-offs among economic, environmental and social performance of supply chains, providing directions to improve each of the considered indicators.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Ahi P, Searcy C (2015) Assessing sustainability in the supply chain: a triple bottom line approach. Appl Math Model 39:2882–2896

    Article  Google Scholar 

  • Alfalla-Luque R, Medina-López C (2009) Supply chain management: unheard of in the 1970s, core to today’s company. Bus Hist 51(2):202–221

    Article  Google Scholar 

  • Azapagic A (2004) Developing a framework for sustainable development indicators for the mining and minerals industry. J Clean Prod 12:639–662

    Article  Google Scholar 

  • Bhagwat R, Sharma M (2007) Performance measurement of supply chain management: a balanced scorecard approach. Comput Ind Eng 53:43–62

    Article  Google Scholar 

  • Bitici U, Garengo P, Dorfler V, Nudurupati S (2012) Performance measurement: challenges for tomorrow. Int J Manage Rev 14:305–327

    Article  Google Scholar 

  • Bjorklund M, Martinsen U, Abrahamssson M (2012) Performance measurement in the greening of supply chains. Supply Chain Manage 17(1):29–39

    Article  Google Scholar 

  • Brandenburg M, Govindan K, Sarkis J, Seuring S (2014) Quantitative models for sustainable supply chain management: developments and directions. Eur J Oper Res 233(2):299–312

    Article  Google Scholar 

  • Burritt, R, Schaltegger S (2014) Accounting towards sustainability in production and supply chains. Brit Account Rev 46(4):327–343

    Google Scholar 

  • Cagnazzo L, Taticchi P, Brun A (2009) The role of performance measurement systems to support quality improvement initiatives at supply chain level. Int J Prod Perform Manage 59(2):163–185

    Article  Google Scholar 

  • Carter CR, Easton PL (2011) Sustainable supply chain management: evolution and future directions. Int J Phys Distrib Log Manage 41(1):46–62

    Article  Google Scholar 

  • Carter CR, Rogers, DS (2008) A framework of sustainable supply chain management: moving toward new theory. Int J Phys Distrib Log Manage 38(5):360–387

    Google Scholar 

  • Christopher M (1998) Logistics and supply chain management—strategies for reducing cost and improving service. Prentice Hall/Financial Times, New Jersey

    Google Scholar 

  • Clift R (2003) Metrics for supply chain sustainability. Clean Technol Environ Policy 5:240–247

    Article  Google Scholar 

  • Collier D, Evans J (2007) Operations management: goods, services and value chains. Thomson South-Western, Mason

    Google Scholar 

  • Cohen S, Roussel J (2004) Strategic supply chain management: The five disciplines for top performance. Mc Graw Hill

    Google Scholar 

  • Dey PK, Cheffi W (2012) Green supply chain performance measurement using the analytic hierarchy process: a comparative analysis of manufacturing organisations. Product Plann Contr: Manage Oper 24(8–9):702–720

    Google Scholar 

  • Dias-Sardinha I, Reijnders L (2001) Environmental performance evaluation and sustainability performance evaluation of organizations: an evolutionary framework. Ecomanage Audit 8(2):71–79

    Google Scholar 

  • Dowse J (2005) Making CR measurement meaningful to the rest of the business. Corp Responsib Manage 1:14–21

    Google Scholar 

  • Epstein MJ, Wisner PS (2001) Measuring and managing social and environmental impacts”. In: Shank J (ed) Handbook of cost management. Warren, Gorham & Lamont, New York

    Google Scholar 

  • Erol I, Sencer S, Sari R (2011) A new fuzzy multi-criteria framework for measuring sustainability performance of a supply chain. Ecol Econ 70:1088–1100

    Google Scholar 

  • Figge F, Hahn T, Schaltegger S, Wagner M (2002) The sustainability balanced scorecard—linking sustainability management to business strategy. Bus Strat Environ 11(5):269–283

    Article  Google Scholar 

  • Fine C (1998) Clockspeed: winning industry control in the age of temporary advantage. Basic Books, New York

    Google Scholar 

  • Geibler J, Kristof K, Bienge K (2010) Sustainability assessment of entire forest value chains: Integrating stakeholder perspectives and indicators in decision support tools. Ecol Model 221(18):2206–2214

    Google Scholar 

  • Gold S, Seuring S, Beske P (2010) Sustainable supply chain management and inter-organizational resources: a literature review. Corp Soc Responsib Environ Manage 17:230–245

    Google Scholar 

  • Gopalakrishnan K, Yusuf YY, Musa A, Abubakar T, Ambursa HM (2012) Sustainable supply chain management—a case study of British Aerospace (BAe) systems. Int J Prod Econ 140(1):193–203

    Article  Google Scholar 

  • Grosvold J, Hoejmose S, Roehrich J (2014) Squaring the circle: management, measurement and performance of sustainability in supply chains. Supply Chain Manage 19(3):292–305

    Article  Google Scholar 

  • Gunasekaran A, Patel C, Tirtiroglu E (2001) Performance measures and metrics in a supply chain environment. Int J Prod Oper Manage 21:71–87

    Article  Google Scholar 

  • Gunasekaran A, Patel C, Ronald E, McGaughey R (2004) A framework for supply chain performance measurement. Int J Prod Econ 87(3):333–348

    Article  Google Scholar 

  • Handfield R, Sroufe R, Walton S (2005) Integrating environmental management and supply chain strategies. Bus Strat Environ 14(1):1–19

    Article  Google Scholar 

  • Hansen E, Schaltegger S (2014) The sustainability balanced scorecard: a systematic review of architectures. J Bus Ethics 133(2):193–221

    Google Scholar 

  • Hassini E, Surti C, Searcy C (2012) A literature review and a case study of sustainable supply chains with a focus on metrics. Inter J Prod Econ 140(1):69–82

    Google Scholar 

  • Hervani A, Helms M, Sarkis J (2005) Performance measurement for green supply chain management. Benchmarking 12(4):330–353

    Article  Google Scholar 

  • Hong P, Roh JJ, Rawski G (2012) Benchmarking sustainability practices: evidence from manufacturing firms. Benchmarking 19(4–5):634–648

    Article  Google Scholar 

  • Hsu CW, Hu AH, Chiou CY, Chen TC (2011) Using the FDM and ANP to construct a sustainability balanced scorecard for the semiconductor industry. Expert Syst Appl 38:12891–12899

    Article  Google Scholar 

  • Hsu YL, Liu CC (2010) Environmental performance evaluation and strategy management using balanced scorecard. Environ Monit Assess 170(1–4):599–607

    Article  Google Scholar 

  • Hubbard, G (2009) Measuring organizational performance: Beyond the triple bottom line. Bus Strateg Environ 18:177–191

    Google Scholar 

  • Jensen M (2001) Value Maximization, stakeholder theory and the corporate objective function. Euro Fin Manage 7(3):297–317

    Google Scholar 

  • Jiménez JB, Lorente JL (2001) Environmental performance as an operations objective. Int J Oper Prod Manage 21(12):1553–1572

    Article  Google Scholar 

  • Johnson SD (1998) Identification and selection of environmental performance indicators: application of the balanced scorecard approach. Corp Environ Strategy 5(4):34–41

    Article  Google Scholar 

  • Kaplan RS, Norton DP (1992) The balanced scorecard: measures that drive performance. Harvard Bus Rev 70(1):71–79

    Google Scholar 

  • Kaplan RS, Norton DP (2001) The strategy focused organization. Harvard Business Press, Boston

    Google Scholar 

  • Keeble JJ, Topiol S, Berkely S (2003) Using indicators to measure sustainability performance at a corporate and project level. J Bus Ethics 44:149–158

    Article  Google Scholar 

  • Kleindorfer PA, Singhal K, van Wassenhove LN (2005) Sustainable operations management. Prod Oper Manage 14(4):482–492

    Article  Google Scholar 

  • Kovács (2008) Corporate environmental responsibility in the supply chain. J Clean Prod 16:1571–1578

    Article  Google Scholar 

  • Krajnc D, Glavic P (2005) A model for integrated assessment of sustainable development. Resour Conserv Recycl 43:189–208

    Article  Google Scholar 

  • Krajnc D, Glavic P (2003) Indicators of sustainable development. Clean Technol Environ Policy 5:279–288

    Article  Google Scholar 

  • Labuschagne C, Brent AC, van Erck RPG (2004) Assessing the sustainability performance of industries. J Clean Prod 13:373–385

    Article  Google Scholar 

  • Länsiluoto A, Järvenpää M (2008) Environmental and performance management forces: integrating “greenness” into balanced scorecard. Qual Res Acc Manage 5(3):184–206

    Article  Google Scholar 

  • Lau KH (2011) Benchmarking green logistics performance with a composite index. Benchmarking 18(6):873–896

    Article  Google Scholar 

  • Lehtinen J, Ahola T (2010) Is performance measurement suitable for an extended enterprise? Int J Oper Prod Manage 30(2):181–204

    Article  Google Scholar 

  • Linton JD, Klassen R, Jayaraman V (2007) Sustainable supply chains: an introduction. J Oper Manage 25(6):1075–1082

    Article  Google Scholar 

  • Markley MJ, Davis L (2007) Exploring future competitive advantage trough sustainable supply chains. Int J Phys Distrib Log Manage 37(9):763–774

    Article  Google Scholar 

  • Naini SG, Aliahmadi AR, Jafari-Eskandari M (2011) Designing a mixed performance measurement system for environmental SCM using evolutionary game theory and balanced scorecard—a case study of an auto industry supply chain. Resour Conserv Recycl 55:593–603

    Article  Google Scholar 

  • Nikolaou IE, Tsalis TA (2013) Development of a sustainable balanced scorecard framework. Ecol Indic 34:76–86

    Google Scholar 

  • Olugu EU, Wong KY, Shaharoun AM (2011) Development of key performance measures for the automobile green supply chain. Resour Conserv Recycl 55:567–579

    Article  Google Scholar 

  • Pagell M, Shevchenko A (2013) Why research in sustainable supply chain management should have no future. J Supply Chain Manage 50(1):44–55

    Article  Google Scholar 

  • Pullman ME, Maloni MJ, Carter CR (2009) Food for thought: social versus environmental sustainability practices and performance outcomes. J Supply Chain Manage 45(4):38–54

    Article  Google Scholar 

  • Reefke H, Trocchi M (2013) Balanced scorecard for sustainable supply chains: design and development guidelines. Int J Prod Perform Manage 62(8):805–826

    Article  Google Scholar 

  • Ross A, Parker H, Benavides M (2012) Sustainability and supply chain infrastructure development. Manage Decis 50(10):1891–1910

    Article  Google Scholar 

  • Schaltegger S, Burritt R (2014) Measuring and managing sustainability performance of supply chains. Review and sustainability supply chain management framework. Supply Chain Manage 19(3):232–241

    Google Scholar 

  • Schaltegger S, Wagner M (2006) Integrative management of sustainability performance, measurement and reporting. Int J Account Audit Perfor Eval 3(3):1–19

    Google Scholar 

  • Searcy C (2012) Corporate sustainability performance measurement systems: a review and research agenda. J Bus Ethics 107:239–253

    Article  Google Scholar 

  • Searcy C, Karapetrovic S, McCartney D (2005) Designing sustainable development indicators: analysis for a case utility. Meas Bus Excell 9:33–41

    Article  Google Scholar 

  • Seuring S (2013) A review of modeling approaches for sustainable supply chain management. Decis Support Syst 54(4):1513–1520

    Google Scholar 

  • Seuring S, Gold S (2013) Sustainability management beyond corporate boundaries: from stakeholders to performance. J Clean Prod 56:1–6

    Article  Google Scholar 

  • Seuring S, Müller M (2008) From a literature review to a conceptual framework for sustainable supply chain management. J Clean Prod 16(15):1699–1710

    Article  Google Scholar 

  • Shaw S, Grant DB, Mangan J (2010) Developing environmental supply chain performance measures. Benchmarking 17(3):320–339

    Article  Google Scholar 

  • Shepherd C, Gunter H (2005) Measuring supply chain performance: current research and future directions. Int J Prod Perform Manage 55(3–4):242–258

    Google Scholar 

  • Singh RK, Murty HR, Gupta SK, Dikshit AK (2009) An overview of sustainability assessment methodologies. Ecol Indic 9:189–212

    Article  Google Scholar 

  • Stonebraker PW, Goldhar J, Nassos G (2009) Weak links in the supply chain: measuring fragility and sustainability. J Manuf Technol Manage 20(2):161–177

    Article  Google Scholar 

  • Taticchi P, Tonelli F, Pasqualino R (2013) Performance measurement of sustainable supply chains: a literature review and a research agenda. Int J Prod Perform Manage 62(8):782–804

    Article  Google Scholar 

  • Thakkar J, Kanda A, Deshemukh S (2009) Supply chain performance measurement framework for small and medium scale enterprises. Benchmarking 16(5):702–723

    Article  Google Scholar 

  • Vachon S, Klassen RD (2006) Extending green practices across the supply chain. The impact of upstream and downstream integration. Int J Oper Prod Manage 26(7):795–821

    Article  Google Scholar 

  • van Marrewijk M (2004) A value based approach to organization types: Toward a coherent set of stakeholder-oriented management tools. J Bus Ethics 55(2):147–158

    Google Scholar 

  • Varsei M, Soosay C, Fahimnia B, Sarkis J (2014) Framing sustainability performance of supply chains with multidimensional indicators. Supply Chain Manage 19(3):242–257

    Article  Google Scholar 

  • Vasileiou K, Morris J (2006) The sustainability of the supply chain for fresh potatoes in Britain. Supply Chain Manage 11(4):317–327

    Article  Google Scholar 

  • Veleva V, Ellenbecker M (2001) Indicators of sustainable production: framework and methodology. J Clean Prod 9:519–549

    Article  Google Scholar 

  • Walker H, Jones, N (2012) Sustainable supply chain management across the UK private sector. Supply Chain Manag 17(1):15–28

    Google Scholar 

  • Winter M, Knemeyer AM (2013) Exploring the integration of sustainability and supply chain management: current state and opportunities for future inquiry. Int J Phys Distrib Log Manage 43(1):18–38

    Article  Google Scholar 

  • Wong CY, Wong C, Boon-itt S (2015) Integrating environmental management into supply chains: a systematic literature review and theoretical framework. Int J Phys Distrib Log Manage 45(1–2):43–68

    Article  Google Scholar 

  • Wu Z, Pagell M (2011) Balancing priorities: decision-making in sustainable supply chain management. J Oper Manage 29(6):577–590

    Article  Google Scholar 

  • Yu X, Li-Ping Tang T (2011) Sustainability in supply chain management: suggestions for the auto industry. Manage Decis 49(4):495–512

    Article  Google Scholar 

  • Zingales F, O’Rourke A, Hockerts K (2002) Balanced scorecard and sustainability: state of the art review (2002/65/CMER). INSEAD, Paris

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Economics, Management and Industrial Engineering, University of Aveiro, Campus de Santiago, Aveiro, 3810-193, Portugal

    Luis Miguel D. F. Ferreira

  2. Mechanical Engineering Department, University of Coimbra, R. Luís Reis Santos—Pinhal de Marrocos, Coimbra, 3030-788, Portugal

    Cristóvao Silva

Authors
  1. Luis Miguel D. F. Ferreira
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Cristóvao Silva
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Luis Miguel D. F. Ferreira .

Editor information

Editors and Affiliations

  1. Departamento de Organizacón de Empresas, Universitat Politècnica de València, Valencia, Spain

    Marta Peris-Ortiz

  2. Management and Economic University of Beira Interior and NECE—Research Unit in Business Sciences, Covilhã, Portugal

    João J. Ferreira

  3. Ciências Empresariais/Engenharia Industrial Instituto Politécnico de Castelo Branco & NECE Research Unit in Business Sciences, Castelo Branco, Portugal

    Luís Farinha

  4. Engenharia Industrial Instituto Politécnico de Castelo Branco & Centro ALGORITMI – Universidade do Minho, Castelo Branco, Portugal

    Nuno O. Fernandes

Rights and permissions

Reprints and permissions

Copyright information

© 2016 Springer International Publishing Switzerland

About this chapter

Cite this chapter

Ferreira, L.M.D.F., Silva, C. (2016). Integrating Sustainability Metrics in the Supply Chain Performance Measurement System. In: Peris-Ortiz, M., Ferreira, J., Farinha, L., Fernandes, N. (eds) Multiple Helix Ecosystems for Sustainable Competitiveness. Innovation, Technology, and Knowledge Management. Springer, Cham. https://doi.org/10.1007/978-3-319-29677-7_8

Download citation

Publish with us

Policies and ethics

Search

Navigation