Model of Warehouse Performance Measurement Based on Sustainable Warehouse Design

Abstract

In sustainable supply chain management (SSCM), sustainability aspects, i.e. economic, social and environmental are integrated in managing supply chain. This concept has elicited government regulations that requiring every company to prevent the occurrence of environmental pollution. However, the concept of sustainability has not been implemented in operational processes of most industries in Indonesia particularly warehouse. This study aims to develop a model of warehouse performance measurement, to measure the warehouse performance, and to identify the indicators needed to be improved. The Balanced Scorecard (BSC) method with Sustainable Supply Chain Management (SSCM) approach is applied in developing the model. Balanced scorecard is a performance measurement method based on four perspectives: financial, customer satisfaction, internal process, and learning growth. BSC is appropriate for overcoming the problems related to performance assessment in SCs according to several researches. There are 12 indicators used in warehouse performance measurement, i.e. warehousing costs, labor cost, perfect quality items, on time delivery, inventory accuracy, environmental friendly tools, waste management, turn over, 5s implementation, worker competency improvement and environmental awareness. The warehouse performance measurement model based on sustainable warehouse design has been successfully demonstrated in medium scale textile industry.