Adapting the environmentallysustainable logistics performancemanagement process

Abstract: Process based approaches to environmentally sustainable logistics performancemanagement are lacking within organizations that buy logistics services (buyers) and thatsell logistics services (LSPs), which puts a damper on environmentally sustainablelogistics performance. Organizations understand the potential of environmentallysustainable logistics performance management, but they seems unable to developeffective management processes and accurate environmentally sustainable logisticsmetrics. An environmentally sustainable logistics performance management process(ESLPM process) is one way for an organization to manage its performance in line withits environmental strategy and overall environmental targets.The purpose of this thesis is to adapt the logistics performance management process toinclude environmental sustainability. The first research question is about thecharacteristics for including environmentally sustainable logistics in the logisticsperformance management process. Characteristics that need to be included in the logisticsperformance management process must be identified in order to illustrate the process, inorder to improve the environmental performance. Moreover, by identifying thecharacteristics of the process activities, it is possible to compare how the characteristicsof the process are similar and/or different between organizations. The performancemanagement process can only be used successfully if the strategy is closely aligned tosome process activities being implemented; this motivates the second research question,which is how the ESLPM process can be expanded to measure alignment.The method used to collect empirical data is primarily interviews in eight multiple-casestudies of four organizations buying logistics services and four organizations sellinglogistics services. The frame of reference is based on the inclusion of environmentalsustainability characteristics in the logistics performance management process and thealignment between process and strategy as well as within processes.The results include a description of an ESLPM process that contains five activities withseventeen characteristics for managing environmentally sustainable logistics. Specificcontexts of eight organizations, like type (private, public, or private/public) and size(small, medium, or large) and their influence and implications concerning the ESLPMprocess are discussed and presented. The matching between the theoretical ESLPMprocess (based on the frame of reference) and the empirical ESLPM process is presentedand then compared within the eight organizations, resulting in a modified ESLPM processwith twenty characteristics. The results shows that the use of an ESLPM process is stillin beginning stages and is not done in a structured manner; in particular, the organizationsfind it difficult to establish appropriate ESLP metrics, to define the ESLP metrics, to setaccurate ESLP targets, and to collect and measure the ESLP metrics.Results from measuring level of alignment include theoretical measurement models fortwo types of alignment, a model for measuring alignment between process and strategy,as well as a model for measuring alignment within a process. The two theoretical modelscontain different aspects that measure alignment on three different levels (high, medium,low). These models are tested within each organization, and the results from measuringlevel of alignment per organization is used to evaluate the two theoretical models,resulting in modified models for measuring alignment.The results lead to increased understanding of how type and size influence thecharacteristics of the ESLPM process and the level of alignment. The results also contribute to the literature on environmentally sustainable logistics performancemanagement and the alignment both between process and strategy as well as within theESLPM process. The result can be used by organizations selling and buying logisticsservices to improve their environmentally sustainable logistics performance.