Today, most manufacturers attempting to monitor and shape the sustainability performance of their suppliers don't base their evaluations on specific KPIs or hard improvement targets. That's because, as a recent CAPS Research report notes, defining standard sustainability KPI and deciding where and how to apply them in the supply chain can be dauntingly complex. Should all suppliers be judged using the same KPI metrics, and should improvement targets be the same for all? If not what, for example, is the ideal carbon emission level for a given supplier and my how much should that supplier be expected to improve each year?
KPI metrics play an important role in supply chain monitoring. improvement may vary sometime but it needs to be regulated.
ReplyDeleteNice.