Abstract||The title of the research is Sustainability Performance Evaluation Management Systems Model for Individual Organizations and Supply Chains. This research has achieved its aim to develop and demonstrate the practical implementation of a simple and objective sustainability performance evaluation management system model for individual organizations and supply chains. It has resulted in the recognition that a new concept – Network of Interested Partners – underpins the achievement of sustainability. The term acknowledges the interdependence and reflects the essential cooperation that must be achieved between business organisations, their commercially related entities and the local community if progress towards sustainability is to be achieved. It therefore encompasses and extends the concept of a supply chain as currently used.
Sustainable Development is defined by the World Commission on Environment and Development as development, which meets the needs of the present without compromising the ability of future societies to meet their own needs. Organizations, as part of human activities, also have to be sustainable. The sustainability of organizations is directly linked to the continual improvement of business performance. Many organizations have found a way to improve performance through the establishment of management systems. International Organization for Standardization (ISO) standards are recognized worldwide as reliable and efficient tools for the implementation of management systems. However, they do not always result in the desired improvement in outcomes. Therefore, if the required improvement of business performance is to be achieved, improved methodologies for development and implementation of performance evaluation (PE) processes are necessary. These methodologies must take into consideration sustainability principles. They also have to be applicable to individual entities and supply chains, with or without management systems in place. Supply chains are important because it is being increasingly recognized that overall supply chain performance is a means of adding value and competitive advantage to all businesses.
In the first part of the research a performance evaluation model or PE (version 1 model) was developed. This was used as criteria to compare and evaluate existing performance evaluation processes and outcomes of individual organisations and their respective supply chain within the Gladstone region, Australia. Questionnaires have also been used to identify and evaluate the needs of the interested parties in relation to the organizations’ and supply chains’ business performance and processes of performance evaluation.
All the information provided in the first part of the research was used by the researcher to develop the Sustainability Performance Evaluation Management Systems model or SPEMS (version 2 model). This incorporates the concepts of Network of Interested Parties/Partners. In particular, one of the outcomes is recognition that organizations need to establish partnerships if effective supply chain performance improvement is to be achieved. Therefore the establishment of partnerships has become a key requirement for the implementation of SPEMS.
The establishment of partnership among participants of a supply chain of Gladstone and implementation of the eight first steps of the SPEMS (version 2 model) in this supply chain was commenced successfully through workshops. The supply chain was formed by commercial organizations, government entities and interested parties from the community. SPEMS requires that partners all have the same level of ownership and authority in the decisions of the supply chain.
Some new terms and their definitions have been created within the research to support the new SPEMS model. They include: Network of Interested Partners, sustainability for organizations, sustainability KPI and sustainability friendly organizations.
All of the above are encompassed within the final SPEMS (version 3 model).