Skip to main content

Advertisement

Log in

A Combined Approach for Green Supply Chain Management Performance Measurement in a Steel Manufacturing Company: An Indonesian Case

  • Research Article
  • Published:
Journal of Sustainable Metallurgy Aims and scope Submit manuscript

Abstract

The purpose of this research is to provide a complete method for measuring the performance of green supply chain management (GSCM) in the steel manufacturing sector using a combined approach. This study is conducted on an integrated system based on four things: the design of the GSCM performance measurement model based on the Seven Sink Performance Model, weighing performance indicators using the analytical network process, the objective matrix method to measure performance assessment, and the traffic light system method to help identify critical indicators. According to the findings of the study, energy consumption is the most important factor that leads to GSCM application success in an Indonesian steel manufacturing company. The proportion of reusable materials is the smallest and most important performance metric that has to be improved. The suggested methodology may be used by steel company supply chain managers to assess and enhance GSCM performance. The suggested approach is verified by a case analysis at an Indonesian steel manufacturing company.

Graphical Abstract

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

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5

Similar content being viewed by others

References

  1. Maryam Masoumi K, Abdul-Rashid SH, Olugu EU, Ghazilla R, Ariffin R (2015) An integrated framework-for designing a strategic green supply chain with an application to the automotive industry. Int J Ind Eng 22(1):46

    Google Scholar 

  2. Kurien G, Qureshi M (2012) Performance measurement systems for green supply chains using modified balanced score card and analytical hierarchical process. Sci Res Essays 7(36):3149–3161. https://doi.org/10.5897/SRE11.1655

    Article  Google Scholar 

  3. Salam MA. An empirical investigation of the determinants of adoption of green procurement for successful green supply chain management. In: Management of Innovation and Technology, 2008. ICMIT 2008. 4th IEEE International Conference on, 2008 (pp. 1038–1043): IEEE. https://doi.org/10.1109/ICMIT.2008.4654511

  4. Dai J, Cantor DE, Montabon FL (2015) How environmental management competitive pressure affects a focal firm’s environmental innovation activities: a green supply chain perspective. J Bus Logist 36(3):242–259. https://doi.org/10.1111/jbl.12094

    Article  Google Scholar 

  5. Srivastava SK (2007) Green supply-chain management: a state-of-the-art literature review. Int J Manage Rev 9(1):53–80. https://doi.org/10.1111/j.1468-2370.2007.00202.x

    Article  Google Scholar 

  6. Akkucuk U (2016) SCOR model and the green supply chain. Handb Res Waste Manage Tech Sustain. https://doi.org/10.4018/978-1-4666-9723-2.ch006

    Article  Google Scholar 

  7. Rao P, Holt D (2005) Do green supply chains lead to competitiveness and economic performance? Int J Oper Prod Manage 25(9):898–916. https://doi.org/10.1108/01443570510613956

    Article  Google Scholar 

  8. Yu V, Ting H-I, Wu YCJ (2009) Assessing the greenness effort for European firms: a resource efficiency perspective. Manag Decis 47(7):1065–1079. https://doi.org/10.1108/00251740910978304

    Article  Google Scholar 

  9. Shafique M, Rashid A, Bajwa I, Kazmi R, Khurshid M, Tahir W (2018) Effect of IoT capabilities and energy consumption behavior on green supply chain integration. Appl Sci 8(12):2481

    Article  Google Scholar 

  10. Kirchoff JF, Tate WL, Mollenkopf DA (2016) The impact of strategic organizational orientations on green supply chain management and firm performance. Int J Phys Distrib Logist Manage 46(3):269–292. https://doi.org/10.1108/IJPDLM-03-2015-0055

    Article  Google Scholar 

  11. de Oliveira UR, Espindola LS, da Silva IR, da Silva IN, Rocha HM (2018) A systematic literature review on green supply chain management: research implications and future perspectives. J Clean Prod 187:537–561. https://doi.org/10.1016/j.jclepro.2018.03.083

    Article  Google Scholar 

  12. Gandhi S, Mangla SK, Kumar P, Kumar D (2016) A combined approach using AHP and DEMATEL for evaluating success factors in implementation of green supply chain management in Indian manufacturing industries. Int J Logist Res Appl 19(6):537–561

    Article  Google Scholar 

  13. Tseng M-L, Islam MS, Karia N, Fauzi FA, Afrin S (2019) A literature review on green supply chain management: trends and future challenges. Resour Conserv Recycl 141:145–162

    Article  Google Scholar 

  14. Tangen S (2004) Performance measurement: from philosophy to practice. Int J Product Perform Manage 53(8):726–737. https://doi.org/10.1108/17410400410569134

    Article  Google Scholar 

  15. Perotti S, Zorzini M, Cagno E, Micheli GJ (2012) Green supply chain practices and company performance: the case of 3PLs in Italy. Int J Phys Distrib Logist Manage 42(7):640–672. https://doi.org/10.1108/09600031211258138

    Article  Google Scholar 

  16. Tseng M-L, Tan K, Chiu AS (2016) Identifying the competitive determinants of firms’ green supply chain capabilities under uncertainty. Clean Technol Environ Policy 18(5):1247–1262. https://doi.org/10.1007/s10098-015-1064-0

    Article  Google Scholar 

  17. Chen YJ, Wu YJ, Wu T (2015) Moderating effect of environmental supply chain collaboration: evidence from Taiwan. Int J Phys Distrib Logist Manage 45(9/10):959–978. https://doi.org/10.1108/IJPDLM-08-2014-0183

    Article  Google Scholar 

  18. Zhu Q, Sarkis J, Lai K-H (2008) Confirmation of a measurement model for green supply chain management practices implementation. Int J Prod Econ 111(2):261–273. https://doi.org/10.1016/j.ijpe.2006.11.029

    Article  Google Scholar 

  19. Zhu Q, Sarkis J, Lai K-H (2008) Green supply chain management implications for “closing the loop.” Transp Res Part E Logist Transp Rev 44(1):1–18. https://doi.org/10.1016/j.tre.2006.06.003

    Article  Google Scholar 

  20. Facanha C, Horvath A (2005) Environmental assessment of logistics outsourcing. J Manage Eng 21(1):27–37. https://doi.org/10.1061/(ASCE)0742-597X(2005)21:1(27)

    Article  Google Scholar 

  21. Hervani AA, Helms MM, Sarkis J (2005) Performance measurement for green supply chain management. Benchmark Int J 12(4):330–353. https://doi.org/10.1108/14635770510609015

    Article  Google Scholar 

  22. Lin R-J (2013) Using fuzzy DEMATEL to evaluate the green supply chain management practices. J Clean Prod 40:32–39. https://doi.org/10.1016/j.jclepro.2011.06.010

    Article  CAS  Google Scholar 

  23. Bhattacharya A, Mohapatra P, Kumar V, Dey PK, Brady M, Tiwari MK et al (2014) Green supply chain performance measurement using fuzzy ANP-based balanced scorecard: a collaborative decision-making approach. Prod Plann Control 25(8):698–714. https://doi.org/10.1080/09537287.2013.798088

    Article  Google Scholar 

  24. Sheu J-B, Chou Y-H, Hu C-C (2005) An integrated logistics operational model for green-supply chain management. Transp Res Part E: Logist Transp Rev 41(4):287–313. https://doi.org/10.1016/j.tre.2004.07.001

    Article  Google Scholar 

  25. Neely A, Gregory M, Platts K (2005) Performance measurement system design: A literature review and research agenda. Int J Oper Prod Manage 25(12):1228–1263. https://doi.org/10.1108/01443570510633639

    Article  Google Scholar 

  26. Neely A, Marr B, Roos G, Pike S, Gupta O (2003) Towards the third generation of performance measurement. Controlling 15(3–4):129–136. https://doi.org/10.15358/0935-0381-2003-3-4-129

    Article  Google Scholar 

  27. Rolstadås A (1998) Enterprise performance measurement. Int J Oper Prod Manage 18(9/10):989–999. https://doi.org/10.1108/01443579810225577

    Article  Google Scholar 

  28. De Toni A, Tonchia S (2001) Performance measurement systems-models, characteristics and measures. Int J Oper Prod Manage 21(1/2):46–71. https://doi.org/10.1108/01443570110358459

    Article  Google Scholar 

  29. Mulebeke JA, Zheng L The analytic network process: evaluation and selection of PDP software. In ISAHP 2005 Honolulu Hawaii, July 8–10 2005

  30. Dervitsiotis KN (1995) The objectives matrix as a facilitating framework for quality assessment and improvement in education. Total Qual Manage 6(5):563–570

    Google Scholar 

  31. Balkan D (2011) Enterprise productivity measurement in services by OMAX (Objective Matrix) method and an application with Turkish emergency service. In: Reser Conference, Productivity of Services Next Gen–Beyond Output/Input. Hamburg. Citeseer, pp 1–13

  32. Hargrave BT (2002) A traffic light decision system for marine finfish aquaculture siting. Ocean Coast Manage 45(4):215–235. https://doi.org/10.1016/S0964-5691(02)00056-X

    Article  Google Scholar 

  33. Kusi-Sarpong S, Sarkis J, Wang X (2016) Assessing green supply chain practices in the Ghanaian mining industry: a framework and evaluation. Int J Prod Econ 181:325–341. https://doi.org/10.1016/j.ijpe.2016.04.002

    Article  Google Scholar 

  34. SCC (2010) Supply chain operations reference (SCOR) model version 10.0. The Supply Chain Council, Inc. SCOR. The Supply Chain Reference (binder)

  35. Kazancoglu Y, Kazancoglu I, Sagnak M (2018) Fuzzy DEMATEL-based green supply chain management performance: application in cement industry. Ind Manage Data Syst 118(2):412–431. https://doi.org/10.1108/IMDS-03-2017-0121

    Article  Google Scholar 

  36. Monov V (2012) Energy consumption and efficiency in industrial processes. In: Proceedings of the International Conference on Robotics, Automation and Mechatronics, vol 12, pp a9–a12

  37. Van LH, Yu VF, Dat LQ, Dung CC, Chou S-Y, Loc NV (2018) New integrated quality function deployment approach based on interval neutrosophic set for green supplier evaluation and selection. Sustainability 10(3):838. https://doi.org/10.3390/su10030838

    Article  Google Scholar 

Download references

Acknowledgements

This research is partially supported by the Ministry of Science and Technology of the Republic of China (Taiwan) under Grant MOST 108-2221-E-011-051-MY3, and the Center for Cyber-Physical System Innovation from The Featured Areas Research Center Program within the framework of the Higher Education Sprout Project by the Ministry of Education (MOE) in Taiwan.

Author information

Authors and Affiliations

Authors

Contributions

VFY and AB contributed to conceptualization; AB contributed to methodology, formal analysis, writing—original draft preparation, and software; VFY, AB, CLY, YJW, and RE contributed to validation and writing—review and editing; AB and RE contributed to investigation and data curation; VFY contributed to resources, project administration, and funding acquisition; and VFY, CLY, and YJW contributed to supervision.

Corresponding author

Correspondence to Achmad Bahauddin.

Ethics declarations

Conflict of interest

On behalf of all authors, the corresponding author states that there is no conflict of interest.

Additional information

The contributing editor for this article was Sharif Jahanshahi.

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Yu, V.F., Bahauddin, A., Yang, CL. et al. A Combined Approach for Green Supply Chain Management Performance Measurement in a Steel Manufacturing Company: An Indonesian Case. J. Sustain. Metall. 8, 1140–1153 (2022). https://doi.org/10.1007/s40831-022-00559-z

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s40831-022-00559-z

Keywords

Navigation