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• Which instruments are best to cover the relevant aspects of performance and
to stimulate action to create sustainable supply chains?
• How can the business system be effectively influenced and how can internal
and external requirements and information be considered in the performance
management process?
The first question will be addressed in the next chapter. The other questions will
be discussed in the first section of the third chapter. The third and the last question will
be examined in the chapters on the various instruments in the third chapter.
3.2 Guidelines for Supply Chain PMMS
When creating, implementing, or reviewing a PMMS for sustainable supply
chains it is necessary to have some kind of checklist or criteria to evaluate whether the
PMMS to be created or put in place is or will be suitable and effective. In this chapter,
an overview of guidelines is given how requirements could be met and crucial challenges
with regard to performance management systems for supply chains can be coped with.
To formulate guidelines, developments in supply chain management have to be
taken in account in addition to an analysis of relevant literature. Several trends with a
high impact on supply chain management and logistics are leading to special challenges
for PMMS in supply chain management [35], [22]:
• Information exchange is an important success factor for supply chains
to avoid waste (e. g. in the form of inventory or out-of-stock-situations).
Through digitalisation, information becomes more easily accessible and
at the same time data processing capacities and capabilities become more
sophisticated (see the rapidly developing possibilities of big data analysis in
the recent years). This leads to the fact that companies must be much more
precise in their performance systems to gain competitive advantage.
• In a globalised world, value creation processes become more differentiated.
The execution is divided into many steps that are performed by different
companies or different organisational units within one company. It becomes
more difficult to create structures that have a holistic view on the supply
chain.
• Innovation cycles have been shredded by technologies such as rapid prototyping
or developments that rely heavily on the integration of the customer in
development processes or business models that combine physical products with
information via the internet. In this context, time-to-market becomes crucial
for companies to establish successful products and its associated services in the
market.
To make the guidelines as useful and simply structured as possible, they are
grouped in the figure below firstly into criteria for particular elements, secondly into
criteria for the performance measurement system or instrument and thirdly into
criteria for the performance management process that aims to align the system with
its environment. In other words, the guidelines are structured according to the above