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Using the GreenSCOR Model in Procurement Processes

In this article, Dr Maro Triantafyllou investigates Environmental Management Systems in procurement processes: IS0 14001.

According to the Supply Chain Council, the Supply Chain Operations Reference (SCOR) model:

…provides a unique framework that links business process, metrics, best practices and technology features into a unified structure.

_{(Naslund and Williamson 2010)}

The aim is to help businesses acquire knowledge regarding their internal and external processes (Steward 1997). The GreenSCOR model is a modification of the SCOR model, and to this end it:

…integrates environmental considerations through processes, metrics and best practices into supply chain management operations.

_{(Cheng et al. 2010, Schoeman and Sanchez 2009)}

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Its aim is to identify the connections between supply chain functions and environmental issues across all stages of the product lifecycle (UNEP 2003; Ntabe et al. 2015). Its operation is based on five central processes of management: plan, source, make, deliver and return (Pinto et al. 2019).

These cover all phases in a supply chain; starting from orders placed by customers, to transactions of physical materials such as equipment, spare part, software and other; and informative interactions with the market in order to plan for the demand and fulfil orders to final recipients. By dividing supply chains in these five processes, the SCOR model defines a set of hierarchical indicators that allow the measurement of performance (Gnomi and Lanzilotto 2013).

GreenSCOR model: identifying environmental impacts

The list below shows where various environmental impacts are created in the physical transformation and flow of products (UNEP 2003). The second SCOR process (source) refers to the environmental impacts of material and supplier procurement operations.

Using the SCOR model to identify the environmental impacts of a supply chain (2003)

Plan

Plan to minimise energy consumption and hazardous material usage
Plan the handling and storage of hazardous materials
Plan for the disposal of ordinary and hazardous waste
Plan compliance of all supply chain activities

Source

Select suppliers with positive environmental records
Select materials with environmentally friendly content
Specify packaging requirements
Specify delivery requirements to minimise transportation and handling requirements

Make

Schedule production to minimise energy consumption
Manage waste generated during the Make process
Manage emissions (air and water) during the Make process

Deliver

Minimise use of packaging materials
Schedule shipments to minimise fuel consumption

Return

Schedule transportation and aggregate shipments to minimise fuel consumption; prepare returns to prevent spills of hazardous materials (oils, fuels, etc) from damaged products

(Adapted from UNEP 2003)

GreenSCOR model: defining environmental performance attributes

To measure the performance of a supply chain, the SCOR model is using five performance attributes (reliability, responsiveness, flexibility, costs and asset management efficiency) which, however, do not directly address environmental concerns. To link the performance attributes to environmental impacts and create a framework used for the development of environmental metrics, UNEP (2003) established five parallel environmental definitions.

The following table shows the SCOR performance attribute definitions with their corresponding environmental definitions that are used as a guide of developing consistent environmental metrics.

Linking SCOR performance attributes with environmental performance (Source: UNEP 2003)

Performance attribute	SCOR definition	Environmental definition
Reliability	The performance of the supply chain in delivering: the correct product, to the correct place, at the correct time, in the correct condition and packaging, in the correct quantity, with the correct documentation, to the correct customer	The ability to deliver the correct product reduces waste from product discards; reduces air emissions and fuel use from extra transportation for returned products. Proper documentation enables all plays of the supply chain to keep better track of hazardous materials or toxins that are embedded in certain products; thus allow them to arrange for proper storage, handling and disposal
Responsiveness	The velocity at which a supply chain provides products to the customer	The environmental impacts that affect the speed of material movement, including regulatory or pollution control steps within a process
Flexibility	The agility of a supply chain in responding to marketplace changes to gain or maintain competitive advantage	The degree to which a firm can meet the environmental demands of its customers. This pertains to the products, their production, transportation and recyclability etc.
Costs	The costs associated with operating the supply chain	The costs of environmental compliance and cleanup as well as the energy costs
Asset management efficiency	The effectiveness of an organisation in managing assets to support demand satisfaction. This includes the management of all assets: fixed and working capital	Managing assets in a manner that reduces environmental impacts and reduces internal costs

(UNEP 2003)

GreenSCOR model: developing environmental performance metrics

Using the GreenSCOR environmental performance attributes, one can create a range of distinct, measurable and applicable environmental performance metrics. Below you can see examples of environmental performance metrics developed by UNEP (2003) for the selection of a) supplier(s) and b) delivery of finished product to customer.

Example of environmental performance metrics developed for the selection of a) suppliers, and b) delivery of finished product to customer (Source: UNEP 2003)

Examples of GreenSCOR environmental performance metrics

(Adapted from UNEP 2003)

This table can be downloaded and viewed in full in the downloads section at the foot of this page.

References

_{Cheng, J., Law, K., Bjornsson, H., Jones, A., Sriram, D. (2010) ‘Modelling and Monitoring of Construction Supply Chains’. Advanced Engineering Informatics 24 (4), 435-455}

_{Gnomi, M. G., Lanzilotto, A. (2013) ‘The GreenSCOR: A Critical Assessment for Supporting Effective Green Supply Chain Management’. XVIII Summer School ‘Francesco Turco’ – Industrial Mechanical Plants. Senigallia, Italy, 11-13 September 2013, 256-261}

_{Naslund, D., and Williamson, S. (2010) ‘What is Management in Supply Chain Management? A Critical Review of Definitions, Frameworks and Terminology’. Journal of Management Policy and Practice 11 (4), 11-28}

_{Ntabe, E., LeBel, L., Munson, A., Santa-Eulalia, L. (2015) ‘A Systematic Literature Review of the Supply Chain Operations Reference (SCOR) Model Application with Special Attention to Environmental Issues’. International Journal of Production Economics 169 (3), 310-332}

_{Pinto, M. M. A., Kovaleski, J. L., Yoshino, R. T., and Pagani, R. N. (2019) ‘Knowledge and Technology Transfer Influencing the Process of Innovation in Green Supply Chain Management: A Multicriteria Model Based on the DEMATEL Method’. Sustainability 11 (12), 1-32}

_{Schoeman, C., and Sanchez, V. (2009) ‘Green Supply Chain Overview and a South Africa Case Study’. in Proceedings of the 28th Southern African Transport Conference (SATC) Pretoria, South Africa, 6-9 July 2009, 569-579}

_{Stewart, G. (1997) ‘Supply-Chain Operations Reference Model (SCOR): The First Cross-industry Framework for Integrated Supply-Chain Management’. Logistics Information Management 10 (2), 62-67}

_{UNEP (2003) GreenSCOR: Developing a Green Supply Chain Analytical Tool Report (LG101T4). United Nations Environment Programme (UNEP)}

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Sustainability and Green Logistics: An Introduction

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Using the GreenSCOR Model in Procurement Processes

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Sustainability and Green Logistics: An Introduction

GreenSCOR model: identifying environmental impacts