Revamped benchmarking model goes green

Supply chain benchmarking initiatives are beginning to incorporate environmental conditions as a factor for assessment. A case in point: Version 9.0 of the Supply Chain Operations Reference (SCOR) model includes metrics for measuring the environmental impact of supply chain activities. The model was developed by the Supply-Chain Council, and member companies can use it to measure the performance of various aspects of their supply chains. The model's metrics encompass procurement, manufacturing, and distribution.

The latest version incorporates and expands on GreenSCOR, formerly a standalone module of the model. It includes metrics, recommended procedures, and examples of best practices for supply chains to address environmental considerations. "GreenSCOR looks at the environmental cost of a unit of production that flows through the supply chain," explained Joseph Francis, chief technology officer for the council, in a presentation at the group's 2008 North American conference.

Among the process recommendations included in GreenSCOR are methods for determining how much air pollution, liquid and solid waste, and carbon dioxide a supply chain generates. The new version also includes such metrics as emissions costs per unit, energy costs as a percentage of production costs, and waste produced as a percent of product produced.