Critical discussions on Performance Indicators

Among the extensive range of performance indicators, the most popular ones are scanned and summarized considering avoidance of their duplications. It is noteworthy having a look at the four aforementioned Tables; for each indicator different definitions have been found in the articles as shown in Table 2.5, Table 2.6, and Table 2.7.

Table 2.5: The most popular economic supplier selection indicators

Supplier ‘s Performance

indicator

Different definitions of indictor

Researchers/the number of applications of indicators E co n o m ic Quality

Inspection & control, Reliability of product performance, Quality system assessment, Defect

and scrap ratio, Low defect rate, Customer rejection rate, Internal rejection rate, Customer

rejection rate, Yield rate, Quality system certifications, return product velocity, Test

capability

All references except for Gheidar Kheljani et al. (2009), Baskaran et al.

(2012) /88

Cost/price

Unit price, Cost reduction plan, Transportation costs, Ordering costs, Storage costs, Warrant costs, Maintenance costs, Failure product cost

All references except for

Boran et al. (2009), Awasthi et al. (2010), Baskaran et al.

(2012)/87

Delivery

Lead time , Order fulfill rate, Condition of products on arrival, Compliance with due date and quantity, Accuracy In filling orders, Accuracy in billing and credit, Labeling, Consistency in

All references except for Boran et al. (2009), Awasthi et al. (2010), Baskaran et al.

meeting delivery deadlines, JIT delivery performance, Lead time

From Table 2.5, it can be seen that the “Quality”, “Cost/price”, and “Delivery” are the most popular economic criteria. Also, “Flexibility”, “Technology capability”, “Service”, “Financial capability”, and “Organization & control” are the secondary popular economic criteria, respectively as shown in Table 2.6.

Table 2.6: The more popular economic supplier selection indicators.

Supplier ‘s Performanc e indicator

Different definitions of indictor

Researchers/the number of applications of indicators E co no mic Technology capability Innovation, Technical problem-solving, Technical

employee and equipment, Allocated capacity, involvement in new product

development, Productivity, Produce knowledge, Assistance knowledge, Current manufacturing

facilities

Chou and Chang (2008); Sevkli et al. (2008); Yang et. al ( 2008);Wang (2010); Chen & Chao, (2012); Luo et al. (2009);Ku, et al., (2010); Kuo, (2010); (Tseng & Chiu, 2013)); Aydin Keskin et al. (2010); Sanayei et al. (2010);Buyukozkan and Cifci (2012); Carrera and Mayorga (2008); Buyukozkan and cifci (2011); Chen (2011); Dalalah et al. (2011); Punniyamoorthy et al. (2011); Erdem and Gosen (2012); Ferreira and Borenstein (2012); Ebrahim, et al., (2009);Ordoobadi, (2009); Bai & Sarkis, 2010;Zhu, Dou, & Sarkis, (2010)/23

Financial capability

Assets and debts, Income and earnings, Cash flow, Capital investment

Vindoh et al. (2010); Wang (2010); Luo et al. (2009); Kuo, (2010); Sanayei, et. al,( 2008); Kokangul and Susuz (2009); Aydin Keskin et al. (2010); Carrera and Mayorga (2008); Buyukozkan and cifci (2011); Punniyamoorthy et al. (2011); Ferreira and Borenstein (2012); Ordoobadi, (2009); Kirytopoulos et al. (2010); Liao and Kao (2010);

Ordoobadi, (2010)/15

Flexibility

Response to change, Product volume changes, Short set- up time, Conflict resolution

Chou and Chang (2008); Ting & Cho,(2008) ; Lee (2009); H. Chen & Chao, (2012) ; Yang et. al ( 2008); Wang & Yang, (2009); Kuo, (2010): Lin, et al., (2010); Tseng & Chiu, (2013); Sanayei, et. al ,( 2008); Kokangul and Susuz (2009); Sanayei et al. (2010); Demirtas & Üstün, (2008), Ozgen et al. (2008), Guneri et al.(2009); Erdem and Gosen (2012);Ebrahim, et al., (2009); Ordoobadi, (2009); Bai & Sarkis, (2010); Chang and Hung (2010); Kirytopoulos et al. (2010);Ordoobadi ,(2010);Zhu, Dou, & Sarkis,( 2010)/23

Organization & control

Top management support, Organization management, Inventory level reduction,

Lot size reduction, Reduction in plant stoppage

due to shortage of material, Outlook for future, Compatibility among levels

and functions

Vindoh et al. (2010); Sevkli et al. (2008);Chou and Chang (2008); Chen & Chao, (2012), Kuo,( 2010); Buyukozkan and cifci (2011); Chen (2011);Punniyamoorthy et al. (2011); Ha & Krishnan, (2008), Bai & Sarkis,( 2010);Zhu, Dou, & Sarkis, (2010)/12

Service

Ease of communication, Response time for customers’ request, Efficiency of engineering

support, Fulfilling customers’ special request,

Customer information service platform, Length of

guarantee period, Empathy

Vindoh et al. (2010); Wang (2010); Luo et al. (2009); Ku, et al., 2010); Kuo, et al., (2010); Lin et al. (2010); (Tseng & Chiu, 2013)); Demirtas & Üstün, (2008); Buyukozkan and cifci (2011);Chen,(2011);Punniyamoorthy et al., (2011);Ha & Krishnan,( 2008), Li, et al., (2008); Zhang et al. (2009); Bai & Sarkis, (2010); Chang and Hung (2010); Kirytopoulos et al. (2010); Liao and Kao (2010); Zhang and Zhang (2011)/19

Finally, the more popular environmental and social criteria are shown in Table 2.7.

Table 2.7: The more popular environmental and social supplier selection indicators

Supplier ‘s Performance indicator

Different definitions of indictor Researchers/the number of applications of indicators E n vironme n tal Environmental competencies

Inventory of hazardous substance, Green design, Green production plan, Cleaner production, Safety and environmental concerns, Adherence to environmental policies, Green purchasing, Life cycle assessment, , Green supply chain management, Product recycling, Environmental effects, Pollution, Greenhouse gas emission, Recycled material, Use of environmental technology & materials, Green market share, Partnership with green organizations, Involvement in green projects, Resource consumption

Hsu and Hu (2009);AydIn Keskin, et al., (2010); Buyukozkan and Cifci (2012); Buyukozkan and Cifci (2011);

Ozgen et al. (2008); Baskaran et al. (2012); Shaw et al.(2012);Awasthi et al. (2010);Bai & Sarkis, (2010);

Zhu, Dou, & Sarkis, (2010); Punniyamoorthy et al. (2011);

Yeh and Chuang (2011)/12

Environmental management

system

Environmental certificates, EUP, ODC, ROHS, ISO 14001, WEEE

Hsu and Hu (2009); Kuo, et al.,( 2010);Ozgen et al. (2008);Awasthi et al. (2010);

Bai & Sarkis, (2010);Zhu, Dou, & Sarkis, (2010);Yeh

and Chuang (2011)/7 S oc ial Social- responsibilities

The interests and rights of employee, The rights of stakeholder, Information disclosure, Respect for the policy, Discrimination, Abuse of human right, Unfair competition, Trust, Employment practices, Local

Kuo, et al.,( 2010); Buyukozkan and Cifci (2011);

Baskaran et al. (2012);Bai & Sarkis, (2010)/4

communities influence

Work safety & labor health

Long working hours, Child labor

Kuo, et al.,( 2010); AydIn Keskin, et al., (2010); Bai & Sarkis, (2010)/4

From a sustainable point of view, threefold merits including economic, environmental, and social have been seen for indicators in some papers. But, the majority of the papers considered only economic merits, and in a few of them environmental and social merits –separately or together- were considered including economic merits. So, these indicators are combined into three categories (economic, environmental, and social) to propose a comprehensive framework for sustainable supplier selection indicators as shown in Figure 2.1.

Economic merits Social merits Flexibility Service Cost/ price Delivery Quality Technology capability Financial capability

Organization & control

Environmental competencies

Environmental management system

Social- responsibilities

Work safety & labor health

Environmental

merits

Sustainable Supplier selection

Figure 2.1: Sustainable supplier selection indicators’ framework.