Abstract
In the quest for sustainability, supply chains these days are being evaluated not just on the economic efficiency basis but also operational and environmental efficiency. With businesses across the world facing mounting pressure to reduce their ecological footprint and provide transparency, there is a pressing need for robust metrics that fully capture sustainability outcomes. This study examines the development and evaluation of Key Performance Indicators (KPIs) that are at the heart of evaluating sustainability in supply chain management. As per available literature in academia, this paper enlists a variety of multi-criteria decision-making approaches—like Analytic Hierarchy Process (AHP), Best-Worst Method (BWM), and fuzzy decision models—that allow us to rank the KPIs for the environmental, economic, and social aspects of sustainability. Specific focus is put on connecting the environmental KPIs—e.g., greenhouse gas emissions, waste reduction, and resource efficiency—to traditional business metrics like product quality, ROI, and occupational safety and health. It is a balance that gives a harmonized and richer system of measurement of performance that is in concert with corporate goals as well as stakeholder ambitions.In addition, the article shows the use of these systems in everyday contexts with industry-case studies regarding the palm oil and the fertiliser industries. The case studies underscore that proper attention needs to be made in the choice of the KPI that is industry-specific and context-fine, as they capture different environmental and operational complexity.
Keywords: Sustainable Supply Chains, Critical Performance Metrics (CPMs), Ecological Performance, Functional Performance, Multi-Faceted Decision-Making (MFDM), Analytic Hierarchy Method (AHM).
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