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rcoming mistrust. Traditional SCM practices have been adversarial. Trust in data sharing, acquisition and monitoring needs to be built.

. Lack of understanding. Multi-organizational measures are difficult to understand for managers focused on internal systems.

. Lack of control. Managers and organizations wish to be evaluated on measures they can control. Inter-organizational measures are difficult to manage and thus

control.

. Different goals and objectives. Differing organizations have different goals and thus would argue for differing measures.

. Information systems. Most corporate information systems are incapable of gathering non-traditional information relating to supply chain performance.

. Lack of standardized performance measures. Agreed upon measures in terms of units to use, structure, format, etc. may not exist.

. Difficulty in linking measures to customer value. Linkage to stakeholder value (expanding to environmental issues) is becoming more complex. The definition of who the customer may be inside a supply chain also is not clear.

. Deciding where to begin. Developing supply chain-wide performance is difficult since it is not always clear where boundaries exist.

Designing a green supply chain management and performance measurement system.

Designing a GSCM/PMS

Next, design issues and implementation issues must be addressed by the organization.

When designing the GSCM/PMS, top management should address the questions

posited below:

. What are the goals of the GSCM/PMS?

. How does the GSCM/PMS fit within the strategy of the supply chain?

. How should GSCM/PMS be designed?

. How should external stakeholder concerns and preferences be integrated?

. What metrics levels and decomposition should be included?

. Who should design the measures?

. Who should monitor the measures?

. How should information generated by system be used and disseminated?

. How should information be linked up to other internal and external performance measurement systems, environmental management systems and other information systems (e.g. enterprise resource planning systems)?

. What are relationships between GSCM measures and organizational measures (e.g. customer satisfaction)?

The design of a GSCM/PMS should begin by defining the overall goal(s) of the system.

The GSCM/PMS design should fit the environmental management systems of organizations. These environmental management approaches range from ISO 14000 to total quality management programs. In fact, there have been many situations, where players within a supply chain have been encouraged, or forced, to adopt environmental management systems, by external players. Part of the reason is that the evidence is growing, environmental management systems influence environmental performance

(Ammenberg, 2001; Hamschmidt, 2000; Florida and Davidson, 2001; Russo, 2001; Andrews et al., 2003), even though many do not guarantee environmental performance improvement.

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