Sustainable Solutions for SCM

Consistency with goals, business strategy and

Special KPIs on SCM and Sustainability can be defined, Consistency with goals strategy and incentive system have to be assured for each KPI “outside” the system. Originally no reference on the measurement process and thus on the acceptance by users; has to be established for each KPI separately and for the whole system.

Instrument can be used to support

Instrument can be used to link functional programs (e. g. in SCM and Sustainability) top-down to an overall business strategy and align financial based incentives with actions in a specific field. based link with a top financial KPI a good acceptance of top- and middle management is likely; for operative KPIs no reference on the measurement process is given. Prerequisites to induce action for top- and middle management, less likely for lower management. Because of calculation-

Instrument was designed to develop an overall business strategy; alignment with incentive system has to be established and aspects of SCM and sustainability have to be integrated actively into the instrument. The process of designing the balanced scorecard ensures a high acceptance of stakeholders and users; because of the goal setting, a reliable measurement of metrics is likely. Because of consistency ,a good chance to induce action; risk of dilution as new aspects are integrated.

Instrument is very flexible

but as it is quite time-

incentive system; especially capture of SCM and Sustainability aspects

special goals and strategies with relation to SCM and Sustainability but is not a comprehensive instrument; TCO can be one aspect to align actions with goals, strategy and incentives. Originally no reference on the measurement acceptance by users; has to be established for the approach as a whole. process and thus on the

consuming to implement it, it is likely that it is used to evaluate the implementation of strategies, goals; it can be used to be linked to the incentive system. The process of designing the structure, content and process ensures a high acceptance of stakeholders and users; due to the extensive elaboration on data gathering also the measurement process should be well defined. Good chance of a high usefulness as integrated; risk of unfavourable effort-benefit- ratio by “over engineering”. processual aspects are

Reliability of measurement process and acceptance by users

Action orientation, usefulness and economy

Depends on the satisfaction of the above stated guidelines.

Should be able to support decisions on sourcing and logistics.

In summary, maturity assessments seem to be a good choice for PMMS in supply chain management to integrate aspects of sustainability. But, there is a substantial risk of “over engineering” the instrument. Therefore, especially for smaller organisations, “leaner” instruments such as single KPIs that focus on a specific aspect might be more useful. Further efforts in companies should be put on the aspect of linking the measurement of outcomes and inducing relevant decisions respectively actions that are to be taken. New technologies that make data gathering easier will help to get a more detailed picture faster. Also the dilemma of being accurate enough and being fast enough will have to be addressed.

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