An Integrated Approach to Evaluating and Strategic Planning of Green Supply Chains

Loy Jue Ying

Abstract

Environmental performance measurement has generally been more focused on segmented sections of the supply chain such as supplier performance. Existing research therefore lacks a systematic approach in evaluating the environmental performance of an end-to-end supply chain. To develop the performance evaluation model, various existing performance evaluation tools were reviewed and put through an Analytic Hierarchy Process (AHP) procedure to assess the suitability in evaluating the environmental aspects of the supply chain. The results of the assessments in the AHP procedure led to the proposed Integrated Performance Evaluation model for this Thesis. The model combines Environmental Performance Evaluation (EPE) with the Balanced ScoreCard (BSC) as the metric identification framework and ANP as the decision analysis tool. One of the results of the Integrated Model is the creation of a Green Performance index which is used for benchmarking purposes internally or against key competitors.

Analysis gained from the Integrated Performance Evaluation model feeds into developing action plans for green transformation through a Strategic Planning procedure. The procedure includes the use of Quality Function Deployment (QFD) and a Cost-Effectiveness evaluation to determine the most appropriate green transformation plan in a systematic manner. Therefore the Integrated Approach proposed in this Thesis not only evaluates the performance of green supply chains, it further explores the options to strategically aid organisations to continuously improve their supply chain to excel in its environmental performance. A case study on the furniture industry will be used to illustrate the application of the Integrated Approach.