Sustainable Solutions for SCM

Figure 3.4 Elements of the PMMS Within the PMMS two levels or elements can be differentiated (see Figure 3.4): • The performance measurement Instruments and/or tools are used to measure and document the performance of the business system. Especially KPIs can be subsumed here but also other, more complex instruments such as the total cost of ownership or balanced scorecards (BSC) can be used to measure the performance. Those instruments are aimed at capturing the performance of the business system in a reliable and valid way to form the basis for the management to make good decisions. They should therefore map the performance in a holistic way, covering all relevant aspects of the business system. Often the instruments themselves consist of different elements, performance measures or indicators. In a respective instrument, they are linked to each other in a certain way. For example, in a BSC, they are grouped into four different categories based on a certain linking-logic. • The performance management process is the link between the management system and the business system. It has to make sure on the one hand that developments in the business system are detected and addressed to the management and on the other hand that impulses frommanagement decisions are effectively implemented. This can be done on the basis of the PDCA-cycle or other processual structures. The process should also make sure that external sources of information such as benchmark data or stakeholders’ requirements are appropriately integrated in the goal setting and evaluation. To design a suitable PMMS for sustainability in supply chain management the following questions are addressed in the following chapters: • What are guidelines to form good and modern PMMS on the different levels (single performance elements, performance measurement instrument/tool and performance management process)? • Which aspects of performance should be addressed in the performance indicators for sustainable supply chains?

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