Executive Briefings

Where Are the Standards and Metrics to Help Supply Managers Monitor Sustainability Efforts?

Supply management professionals are uniquely positioned to influence a company's environmental sustainability efforts as well as the performance of supply base partners in this area. But where are the standards and metrics?

Many supply managers recognize the altruistic and commercial benefits of such a program, but struggle with the details of appropriate expectations, implementation and execution.

There are many critical issues facing supply professionals as they strive to implement environmental sustainability standards in their own companies and in the supply base, including establishing metrics, both internally and with suppliers.

Is it possible to accurately measure total costs and the total impact and benefit of sustainability practices? Supply management executives know that, ideally, there would be key metrics and standards for environmental performance, similar to measures of quality based on defect rate, logistics based on transit time or payment terms based on days and weeks. Unfortunately, the reality is that the complexity of an entire supply chain's operations and the still-emerging science behind environmental activities, coupled with limited knowledge and resources, often doesn't readily allow for such specifics.

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Keywords: Environmental, Quality & Metrics, Business Strategy Alignment, Supply Chain Analysis & Consulting, Global Supply Chain Management, sustainable supply chains, total cost of sustainability, corporate sustainability programs

Many supply managers recognize the altruistic and commercial benefits of such a program, but struggle with the details of appropriate expectations, implementation and execution.

There are many critical issues facing supply professionals as they strive to implement environmental sustainability standards in their own companies and in the supply base, including establishing metrics, both internally and with suppliers.

Is it possible to accurately measure total costs and the total impact and benefit of sustainability practices? Supply management executives know that, ideally, there would be key metrics and standards for environmental performance, similar to measures of quality based on defect rate, logistics based on transit time or payment terms based on days and weeks. Unfortunately, the reality is that the complexity of an entire supply chain's operations and the still-emerging science behind environmental activities, coupled with limited knowledge and resources, often doesn't readily allow for such specifics.

Read Full Article


Keywords: Environmental, Quality & Metrics, Business Strategy Alignment, Supply Chain Analysis & Consulting, Global Supply Chain Management, sustainable supply chains, total cost of sustainability, corporate sustainability programs